Rivian lowers 2025 targets and plans for increased spending
- Rivian has adjusted its 2025 vehicle delivery outlook to 40,000-46,000 units, down from 46,000-51,000.
- The company's updated capital expenditures are now projected at $1.8 billion to $1.9 billion.
- Despite these changes, Rivian has reaffirmed its goal to achieve a modest positive gross profit this year.
In early May 2025, Rivian Automotive, an all-electric vehicle manufacturer based in the United States, announced an adjustment to its 2025 targets for vehicle deliveries and capital expenditures. This decision comes amid concerns about the impacts of the global trade environment, particularly influenced by tariffs under the previous administration and their effects on consumer sentiment and demand. The company revealed that it now expects to deliver between 40,000 and 46,000 vehicles, a decrease from an earlier estimate of 46,000 to 51,000 units. Additionally, Rivian has updated its capital expenditures expectations to between $1.8 billion and $1.9 billion, an increase compared to previous guidance of between $1.6 billion and $1.7 billion. Despite these adjustments, Rivian reaffirmed its target to achieve a modest positive gross profit in the current year. The company has recently shown a better-than-expected performance in the first quarter, recording a loss per share of 41 cents compared to the anticipated 76 cents. Their revenue for the same period reached $1.24 billion, surpassing expectations of $1.01 billion. This improved performance is partly attributed to the automaker's joint venture with Volkswagen Group, which was established as part of a larger $5.8 billion deal. Rivian's desire to secure a stable financial future amidst fluctuating market conditions illustrates the ongoing challenges within the automotive industry and highlights the potential impacts of global trade relations on domestic manufacturers.