Rivian, hit by tariffs and EV industry headwinds, reaffirms Georgia plans
Credit: Bita Honarvar
Rivian is starting to feel the impact of the fast-changing tariff landscape and federal policy changes that will likely stunt the momentum of the electric vehicle industry.
The California-based EV maker — which has announced large office and factory projects in Georgia — downgraded its financial outlook on Tuesday for the remainder of 2025, citing trade and regulatory changes.
The company now expects to lose between $2 billion and $2.25 billion during 2025, roughly $300 million more than prior projections. The worsened outlook was actually the second time Rivian adjusted financial projections and cost estimates so far this year.
“Changes to EV tax credits, regulatory credits, trade regulation and tariffs are expected to have an impact on the results and the cash flow of our business,” Rivian CEO RJ Scaringe said Tuesday on a second-quarter call with investors.
Credit: Getty Images for Rivian
Rivian said the changed outlook centers primarily on the impacts of tariffs and the new GOP spending and tax bill President Donald Trump signed in July. The trade war has sent companies scrambling to remake supply chains in order to either avoid or mitigate import taxes, or find ways to either absorb the costs or pass on costs to customers.
The GOP tax and spending bill rolls back and eliminates many EV tax credits and policies aimed at growing the fully plug-in vehicle industry in America.
Rivian officials told investors the financial outlook changes don’t impact Rivian’s investment plans for Georgia, which include an East Coast headquarters in Atlanta and a $5 billion Georgia factory an hour east of the city. The office project was announced in mid-July and will employ about 100 workers by the end of 2025, with plans for up to 500 jobs. Rivian officials expect to break ground on the manufacturing plant next year.
Credit: Courtesy of Rivian
At one point, the factory was expected to open in 2024, but it was pushed back. Georgia and local leaders agreed to a $1.5 billion incentive agreement with Rivian for its factory, much of which is contingent upon meeting investment and job creation milestones.
During the second quarter, Rivian posted total revenue of $1.3 billion, a 13% increase from the same time in 2024. The automaker also posted a loss of $1.1 billion, a 23% decrease from the same time last year but a 106% increase from this year’s first quarter.
The spike in losses was credited to changes to regulatory credit programs and lower production volumes at the company’s Illinois factory.
During the second quarter, the automaker delivered 10,661 vehicles and produced 5,979 vehicles at its sole factory in Normal, Illinois. The factory underwent a 1.1 million-square-foot expansion to prepare for a new crossover SUV model called R2, which company leaders said partially led to the lower production figures than prior quarters. Executives also cited tariff impacts on supply chains.
Scaringe told Reuters on Tuesday that the supply chain disruptions specifically were related to rare earth metals from China used to make EV parts.
“Therefore, our costs look higher, but it’s not as if our bill of materials grew or as if we became operationally less efficient,” he told the news outlet.
But, Claire McDonough, Rivian’s chief financial officer, told investors “we believe we now have visibility into these components for the remainder of the year.”
The Illinois factory will shut down for three weeks in September to prepare for R2’s launch next year.
The automaker ended June with nearly $7.5 billion in cash, cash equivalents and short-term investments, roughly $359 million less than a year ago.
Rivian also, on June 30, received a $1 billion equity investment from German automaker Volkswagen Group after meeting financial goals. The company’s balance sheet accounts for $2.5 billion in additional financing next year from VW, part of an agreement between the two automakers worth up to $5.8 billion. Rivian also lists a $6.6 billion federal construction loan tied to the company’s Georgia factory plans.
“The loan is set up as more of a project finance instrument,” McDonough told The Atlanta Journal-Constitution in July. “So it does require Rivian to have broken ground and continue to invest in the site before we’ll have a timeline for an initial (loan) draw out of the facility, which is really by design.”
Credit: Courtesy Rivian
Rivian also reaffirmed its vehicle delivery goal of 40,000 to 46,000 EVs during 2025. The company entered the year projecting 46,000 to 51,000 deliveries but cut that estimate at the end of the first quarter.
Cox Enterprises, which owns the AJC, also owns about a 3% stake in Rivian.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
