Rivian (RIVN) reported better-than-expected first quarter results on Tuesday and posted a second straight quarter of gross profits, but President Trump’s tariffs on auto parts will push the pure-play EV maker’s capital expenditures higher. Rivian stock was down slightly in after-hours trade following the announcement.
“This quarter we hit our second consecutive gross profit and our highest gross profit to date at $206 million,” CEO RJ Scaringe said in a statement. “We have continued to make significant progress on R2, including vehicle validation builds underway and our Normal, Illinois manufacturing facility expansion on track.”
Rivian further said hitting the gross profit milestone unlocked an additional $1 billion investment from Volkswagen Group as part of its investment in Rivian following the formation of their joint venture. The funding is expected on June 30.
But the company said “evolving trade regulation, policies, tariffs,” as well as the impact on consumer sentiment and demand have led Rivian to cut its 2025 delivery outlook to 40,000 to 46,000 units (from 46,000 to 51,000) and raise its capital expenditures guidance to $1.8 billion-$1.9 billion from a prior $1.6 billion-$1.8 billion.
The company did maintain its 2025 full-year adjusted EBITDA loss projection in the range of $1.7 billion to $1.9 billion.
“While Rivian has 100 percent US vehicle manufacturing and a majority of its bill of materials (excluding cells) coming from the US or [United States-Mexico-Canada Agreement] USMCA-qualified, Rivian is not immune to the impacts of the global trade and economic environment,” the company said.
Rivian CFO Claire McDonough said on the earnings call with analysts that the company had stockpiled enough battery cells to last until early 2026. The company also said other batteries that it sources from LG would eventually be made in Arizona, as opposed to South Korea.
Rivian reported revenue of $1.240 billion vs. $981.21 million estimated by Bloomberg, slightly higher than the $1.204 billion reported a year ago. The company posted an adjusted loss per share of $0.41 vs. $0.79 estimated, with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $329.0 million vs. $546.4 million expected.
The company said in early April that it produced 14,611 vehicles at its manufacturing facility in Normal, Ill., and delivered 8,640 vehicles, in line with its expectations.
Continued improvements in cost-cutting will now come face to face with Trump’s auto tariffs, which will raise the company’s bill of materials (BOM) figures for each EV sold. Internal components, battery cells, and even steel and aluminum tariffs will likely hit Rivian, though, as a US producer, it will have the ability to get “offsets” for some tariffs on foreign-made parts.
Read more: The latest news and updates on Trump’s tariffs
Of importance is the future of the USMCA parts and how long those parts will be exempt from tariffs. The administration is expected to give guidance on that shortly.
Rivian said the production ramp-up of its upcoming R2 was progressing, and the company is targeting a 2026 launch.
In terms of expansion, the company still lists a commitment from the Department of Energy (DOE) for a $6.6 billion loan under its balance sheet. The loan, part of the DOE’s Advanced Technology Vehicles Manufacturing program, would support the construction of Rivian’s upcoming assembly plant outside of Atlanta.
The White House and the Department of Government Efficiency (DOGE), however, said they will scrutinize the deal, potentially putting the DOE loan to Rivian in limbo.
Last quarter, Rivian said during its earnings call that it was working with the administration on the loan and that the Atlanta project would create 7,500 new manufacturing jobs.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
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