Rivian Automotive Inc., the EV maker’s share price s fell after the electric-vehicle scraps key profit goal and warned of $1.1B loss in Q2 earnings. This highlighted the pressure it’s facing from the tariffs and changes to U.S. environmental rules. However, Rivian is standing by its full-year delivery guidance of 40,000 to 46,000 vehicles.
It seems the EV makers going through a tough time as the U.S. administration, has decided to take away consumer tax credits, impose high tariffs on imports of auto parts and remove emission fines for makers of gas vehicles. Rivian’s Q2 earnings showed a sizable loss of 1.1B.
Rivian’s profit cancellation
Rivian is expecting to now breakeven on a gross profit basis this year, revising its previous profit forecast. Rivian blames loss of revenue growth for Q2 on higher costs in the June quarter. Rivian is hit by China’s curbs on the export of heavy rare earth metals an essential components for motors and had to increase its adjusted core loss forecast for the year as income from the sale of regulatory credits have put that goal out of reach.
On the earnings call on Tuesday, CEO RJ Scaringe said, “While we believe deeply in the long-term value drivers of our business, the policy environment continues to be complex and rapidly evolving”.
Revenue for the quarter was slightly up to $1.3 billion, just ahead of analyst estimates, but still well below what investors were hoping for. The company’s adjusted loss per share was at $0.80, missing expectations by $0.04.
Rivian’s cost of revenue for each vehicle produced rose about 8% to $118,375 per unit sold from a year earlier.
Rivian’s delivery forecast held
As per CFO Claire McDonough, the lower production in the June quarter led to a $14,000 impact per vehicle sold to cost of goods sold.
Rivian plans to shut down the production for three weeks in September, after a one-week pause in the Q2. This supports component integration ahead of next year’s crucial smaller and cheaper R2 SUV launch.
Rivian’s Q2 loss report
As per Rivian, the expected adjusted core loss for Q2 to be between $2B and $2.25B this year, compared with $1.7B to $1.9B previously forecast.
Expecting a breakeven for this year’s gross profit, through previously Rivian expected a modest profit.
Rivian delivery forecast
Rivian expects record deliveries in the Q3 across its consumer and commercial segments as demand is pulled forward. Alongside SUVs and pickups, Rivian makes electric delivery vans for fleets, including Amazon.com, which is its largest shareholder.
Rivian stock update
Rivian’s share price fell as much as 4.7% on Wednesday before paring the drop to 1.9% as of 9:39 a.m. Rivian’s stock had declined about 8.7% this year, trailing the S&P 500 Index’s 7.1% gain.
Rivian is the latest causality in the auto market. U.S. policies are affecting profits of legacy automakers including GM, Ford Motor Co. and Stellantis NV. The automakers confirmed that they have reduced earnings by billions of dollars in 2025.
