Rivian Narrows Q2 Net Loss, Maintains 2025 Delivery Outlook

On August 5th, American electric vehicle manufacturer Rivian Automotive announced that its revenue for the second quarter of this year increased by 13% year-on-year to $1.3 billion; net loss was $1.1 billion, an improvement compared to $1.5 billion in the same period last year.

R1S; Image source: Rivian

In the company's Q2 earnings call, Rivian CEO RJ Scaringe pointed out that due to policy adjustments under the Trump administration, including increased tariffs and reduced federal support for electric vehicles in the United States, Rivian is facing a more challenging business environment. RJ Scaringe stated, "The policy environment remains complex and rapidly changing. Adjustments to electric vehicle tax credits, regulatory credits, trade regulations, and tariffs are expected to impact our financial performance and cash flow."

Rivian’s gross loss for the second quarter was $206 million, a decrease from $451 million in the same period last year. Although the company achieved positive gross profit for the first time in the fourth quarter of 2024, and continued this trend in the first quarter of this year, it currently expects to be unable to achieve a positive gross margin in 2025, mainly due to a decline in the value of regulatory credits and other subsidies resulting from policy changes.

At the same time, Rivian expects its adjusted EBITDA loss for this year to widen to "$2 billion to $2.25 billion," higher than the previous forecast of "$1.7 billion to $1.9 billion."

Rivian CFO Claire McDonough stated that although tariffs had little impact on costs in the second quarter, it is expected that in the second half of this year, the net impact of tariffs per vehicle will reach several thousand dollars.

Claire McDonough also noted that the company expects revenue from the sale of carbon emission regulatory credits to other automakers to decline significantly. Regulatory credit sales revenue for the remainder of 2025 is expected to reach $160 million, down from the previously anticipated $300 million.

It is worth noting that Rivian reiterated its delivery forecast for 2025 (40,000 to 46,000 vehicles). However, to achieve this target, the company needs to perform strongly in the second half of this year. In July, Rivian reported that its deliveries in the second quarter of this year decreased by 23% year-on-year to 10,661 vehicles. Combined with 8,640 vehicles delivered in the first quarter, the company needs to sell approximately 21,000 vehicles in the second half of this year to reach the lower end of its 2025 delivery forecast.

Rivian is currently facing challenges including a slowdown in consumer demand for electric vehicles, increased tariffs on imported automotive parts, and the cancellation of the $7,500 consumer tax credit as of September 30.

To respond to market changes, Rivian has moderately raised the prices for the 2026 models. The starting price (including shipping) of the Rivian R1T pickup has been increased from $71,700 to $72,885, while the starting price (including shipping) of the Rivian R1S crossover has been raised from $77,700 to $78,885.

Rivian is counting on the lower-priced R2 crossover, scheduled for release next year, to enhance its market appeal. The target price for the base model of the Rivian R2 (excluding shipping) is $45,000. RJ Scaringe stated that despite losing the tax credit, the price target for the Rivian R2 remains unchanged. He added that Rivian will launch a high-end version before selling the base model.

RJ Scaringe said, "After spending a significant amount of time driving the Rivian R2, I have more confidence in this vehicle than any product we have developed. The product-market fit is incredible. Its packaging, technological configuration, and overall value proposition position the R2 to capture a significant market share."

After the above report was released, Rivian's stock price fell about 5% in after-hours trading on August 5.