Executives at electric vehicle startup Rivian adjusted their expectations for 2025 because of the fast-changing tariff environment, advising Wall Street that the automaker will likely deliver fewer vehicles this year.
Company leaders, however, said they remain unshaken by new threats from the Trump administration to revoke an approved federal construction loan for a planned $5 billion factory in Georgia.
R.J. Scaringe, CEO of California-based Rivian, told investors Tuesday that the automaker is bracing for new tariffs levied by President Donald Trump to increase production costs by a few thousand dollars per vehicle. Those expectations prompted Rivian to increase its projected expenditures for the year by $100 million and cut its projection for how many EVs it will deliver to customers.
“We are not immune to the impacts of the global trade and economic situation, which we expect to impact material costs, material availability, capital expenditures and the demand backdrop,” Scaringe said on an investor call discussing Rivian’s first quarter financials.
The automaker expects to deliver 40,000 to 46,000 EVs during 2025, a decrease from the 46,000 to 51,000 units Rivian projected at the beginning of the year. During the first quarter, the automaker delivered 8,640 EVs and produced 14,611 vehicles at its sole factory in Normal, Illinois.
Credit: RON JOHNSON
Credit: RON JOHNSON
Tariffs dominated the earnings call, but the automaker’s leaders never broached the subject of the company’s Georgia-focused construction loan.
The Department of Energy’s Loan Programs Office and Rivian finalized terms on a $6.6 billion loan in the waning days of the Biden administration to help the company build a factory an hour east of Atlanta. Trump and his allies criticized the loan alongside other construction financing greenlit for clean energy projects.
U.S. Energy Secretary Chris Wright told Bloomberg Television on Friday that his agency plans to withhold $400 billion of loans approved for those projects, which would include the Rivian construction loan. But in a letter to shareholders, Rivian listed the loan on its balance sheet, saying it will assist “with the buildout of our Georgia facility.”
On Monday, Rivian spokesperson Peebles Squire seemed unconcerned when asked by The Atlanta Journal-Constitution about the loan’s status.
“Rivian is laser-focused on bringing back American manufacturing, creating 7,500 jobs and new economic opportunities with our future Georgia facility,” he said.
Credit: Courtesy Rivian
Credit: Courtesy Rivian
‘Mitigate potential risks’
Despite all of Rivian’s vehicles being built in the U.S., the widespread economic disruption spurred by the Trump administration’s tariff campaign rippled through the company’s 2025 expectations.
Scaringe said Rivian currently sources its EV battery cells from South Korea through LG, adding that the company has stockpiled enough cells to last through early 2026. By early 2027, Rivian expects to shift that supply chain to Arizona-made battery cells.
Claire McDonough, Rivian’s chief financial officer, said other material costs could increase because of tariffs, regardless of their country of origin. She also warned that trade restrictions on the minerals used in EV batteries from China could disrupt production across the industry.
“We’re also monitoring potential impacts on our production due to the export restrictions on rare earth materials coming from China,” she said. “We’re actively monitoring these developments and looking to mitigate potential risks through a variety of initiatives, including strategic sourcing and proactive engagement with policymakers.”
During the first quarter, Rivian posted total revenue of $1.2 billion, a 3% increase from the same time last year. The automaker also trimmed its losses to $541 million, a 63% decrease from the same time last year.
The automaker also had nearly $7.2 billion in cash, cash equivalents and short-term investments at the end of March, roughly $600 million less than a year ago. Rivian leaders said those reserves will be leveraged to provide the company time to become profitable and help finance its Georgia factory. The company has said it plans to begin construction of the factory next year, with EV production starting there in 2028.
Credit: Bita Honarvar
Credit: Bita Honarvar
Rivian added that it met financial milestones that unlock an expected $1 billion investment through the company’s partnership with Volkswagen Group. The two automakers finalized a joint venture last year worth up to $5.8 billion. Rivian said it expects to receive the $1 billion investment at the end of June.
Rivian shares were trading down about 1% as of 6 p.m. Tuesday, after markets closed, after remaining effectively flat during the trading day.
Cox Enterprises, which owns the AJC, also owns about a 3% stake in Rivian.
About the Author
Keep Reading
The Latest
Featured
