Rivian (RIVN) released its second quarter earnings report, which featured mixed results. The company announced no gross profit for the quarter, as various policy changes, including tariffs and the end of EV tax credits, hindered its performance. Additionally, Rivian widened its projection for full-year losses due to challenges from trade wars and regulatory shifts.
Rivian indicated that recent policy measures are expected to “continue to impact its results and cash flows.” In reaction to these changes and its recent performance, the company raised its adjusted 2025 full-year EBITDA projection to a range of $2 billion to $2.25 billion, an increase from the previous range of $1.7 billion to $1.9 billion.
Key policy changes influencing Rivian’s financials include the phasing out of the EV tax credit by the Trump administration, which is set to expire on September 30, along with an automotive tariff of 25% on vehicles and parts. Rivian noted that the costs associated with these tariffs amount to thousands of dollars, further complicating their financial landscape.
In premarket trading on Wednesday, Rivian’s stock fell over 5% following the report. For the quarter, Rivian generated revenue of $1.303 billion, slightly surpassing Bloomberg consensus estimates of $1.28 billion and up from $1.158 billion year-over-year. However, the company reported a loss per share of $0.97, which was greater than the expected $0.77, and an adjusted EBITDA loss of $667 million versus the anticipated $493 million.
On a brighter note, Rivian reported notable progress in the development of its upcoming R2 midsize SUV, with plans to commission the new R2 production line in the third quarter. CEO RJ Scaringe confirmed, “This quarter we made significant progress in R2 development and testing,” further mentioning that the Normal, Illinois facility expansion is nearing completion and manufacturing preparations are underway.
Rivian did produce 5,979 vehicles at its Normal facility and delivered a total of 10,661 vehicles during the second quarter, though this was just below analysts’ expectations of 10,800 deliveries. The company mentioned that production was somewhat restricted as it readied for launching 2026 model vehicles.
Looking ahead, Rivian reaffirmed its delivery guidance for 2025, expecting to deliver between 40,000 to 46,000 vehicles. However, it will temporarily halt factory operations for three weeks in September to prepare for the R2 and to boost manufacturing capacity to 215,000 units.
Rivian’s commitment to expanding its production capabilities and the positive momentum surrounding the R2 SUV development suggest a focused effort towards overcoming the economic and regulatory challenges it faces.