Rivian earnings: EV maker cuts delivery guidance because of Trump’s tariffs and trade wars

Tech Crunch - May 6th, 2025
Open on Tech Crunch

Rivian announced in its latest earnings report that it will deliver fewer vehicles in 2025 than previously anticipated, blaming President Trump's tariffs and regulatory changes. The company now expects to deliver between 40,000 and 46,000 electric vehicles by the end of the year, a decrease from the earlier forecast of 46,000 to 51,000. Consequently, Rivian raised its capital expenditure guidance to between $1.8 billion and $1.9 billion. This comes as other automakers like Ford and General Motors also pulled their guidance, citing economic uncertainty from the tariffs. Rivian's delivery forecast reduction is especially significant as the company has been experiencing stagnation in its volume growth over the past three years.

The broader implications of Rivian's announcement highlight the challenges faced by the automotive industry under the current U.S. administration's economic policies. In addition to the tariffs, the potential elimination of the $7,500 federal tax credit for electric vehicles could further impact demand. Despite generating $206 million in gross profit during the first quarter of 2025, Rivian still reported a net income loss of $541 million, although this was an improvement from the previous year. Automotive revenue declined, but total revenues experienced a slight increase due to soaring sales in software and services. Enhanced vehicle electrical architecture and software development services significantly boosted these revenues, marking a strategic pivot for the company amid a turbulent economic landscape.

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RATING

6.0
Moderately Fair
Read with skepticism

The article provides a timely and relevant overview of Rivian's financial performance and the challenges posed by recent economic policies. It accurately reports key figures and offers insight into the impact of tariffs on the company. However, the lack of source attribution and diverse perspectives limits its depth and transparency. While the article is clear and accessible, it could benefit from more comprehensive exploration of the broader industry context and potential policy implications. Overall, it serves as a useful update for those interested in Rivian and the automotive industry but could be strengthened by greater source transparency and balanced perspective.

RATING DETAILS

7
Accuracy

The article presents several factual claims that are largely in line with available data, such as Rivian's revised delivery guidance and financial performance. The claim that Rivian expects to deliver between 40,000 and 46,000 vehicles by the end of 2025 is consistent with statements from the company. However, the attribution of these changes primarily to President Trump's tariffs and regulatory changes lacks comprehensive evidence. The impact of tariffs on Rivian's financials, while mentioned, would benefit from more detailed explanation or citation of specific sources to substantiate the extent of this impact. Additionally, the article accurately reports Rivian's gross profit and net income loss figures, which are verifiable through the company's earnings reports. However, the connection between these financial outcomes and the tariffs requires further validation.

6
Balance

The article predominantly focuses on Rivian's perspective and challenges, with minimal exploration of other viewpoints, such as the broader automotive industry's response to tariffs or the potential benefits of these policies. While it mentions Ford and General Motors, it does so in passing, without delving into their specific strategies or countermeasures. This creates an impression that the narrative is somewhat skewed towards highlighting Rivian's difficulties without fully contextualizing them within the industry. The article could improve balance by including perspectives from economic analysts or government officials to provide a more rounded view of the situation.

7
Clarity

The article is generally clear in its presentation of information, with a logical flow that guides the reader through Rivian's financial performance and challenges. It uses straightforward language and provides specific figures, such as delivery targets and financial outcomes, which aid comprehension. However, the article could improve clarity by providing more context around certain claims, such as the specific nature of the tariffs and how they impact Rivian. Additionally, a clearer distinction between facts and projections would enhance reader understanding.

5
Source quality

The article does not explicitly cite its sources, which makes it difficult to assess the credibility and reliability of the information presented. While it likely draws from Rivian's earnings report and public statements, the lack of direct attribution reduces transparency and the ability to verify claims independently. The article would benefit from referencing specific documents, such as the earnings report or statements from company executives, to enhance credibility. Additionally, incorporating expert analysis or commentary would provide depth and support for the claims made.

5
Transparency

The article lacks transparency in terms of source attribution and the methodology behind its claims. It does not clearly disclose where the information is derived from, such as specific earnings reports or press releases. The article would benefit from a clearer explanation of the basis for its claims, particularly regarding the impact of tariffs and regulatory changes. Additionally, any potential conflicts of interest, such as affiliations with Rivian or other automakers, are not disclosed, which could affect the perceived impartiality of the reporting.

Sources

  1. https://techcrunch.com/2025/05/06/rivian-earnings-ev-maker-cuts-delivery-guidance-because-of-trumps-tariffs-and-trade-wars/
  2. https://www.wglt.org/local-news/2025-05-06/rivian-posts-2nd-straight-profit-but-significant-uncertainty-surrounding-tariffs-looms
  3. https://www.morningstar.com/news/marketwatch/20250506336/rivian-makes-all-its-evs-in-the-us-but-it-still-isnt-immune-to-trumps-tariffs
  4. https://electrek.co/2025/05/06/rivians-rivn-q1-2025-report-highest-gross-profits-r2-validations/