Rivian’s Deliveries Drop 22.7% as Tariffs and High Rates Shock EV Market
The highway to success has potholes, and Rivian’sRIVN EVs are discovering theirs are crater-sized. The electric truck maker saw deliveries plummet 22.7% year-over-year to 10.7K vehicles in Q2. This shift comes as tariff challenges, elevated borrowing costs, and fierce competition have forced the off-road EV specialist to restructure its entire supply chain to offset soaring manufacturing costs.
- Rivian produced just 5.98K vehicles in the second quarter, well below the 11.33K units analysts expected, mainly due to factory changes for its upcoming 2026 R1T and R1S launches.
- Even with lower output and ongoing manufacturing preparations, Rivian is sticking to its full-year forecast of delivering between 40K and 46K vehicles.
Winds of hope: After achieving its first-ever quarterly gross profit in Q1, Rivian now faces fresh margin pressure from rising costs just as it prepares for the R2 rollout. However, the company secured a $1B equity injection from Volkswagen GroupVWAGY as part of a broader $5.8B technology joint venture that could provide the runway it needs to create more affordable R2 SUVs. With Senate Republicans proposing to eliminate the $7.5K EV tax credit by September, Rivian’s path forward will depend heavily on whether consumers embrace electric vehicles without government incentives.