EV maker Rivian cuts 2025 production target on tariff turmoil

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Rivian said it will deliver fewer electric vehicles this year than originally forecast, the latest sign of the turmoil shifting US trade policy is having on carmakers across the globe.

The California-headquartered company said on Tuesday it expected to deliver between 40,000 and 46,000 EVs in 2025, down from a range of 46,000 to 51,000 that already targeted fewer deliveries than last year.

Rivian builds all of its trucks and vans at its factory in Illinois, but the cells that go in the batteries that power them are imported. The carmaker said it was “not immune” to the impact of the Trump administration’s tariffs and their potential effect on consumer demand.

“These factors are expected to impact our global supply chain, material costs and access, capital expenditures and market dynamics,” the company said.

Rivian said it was addressing those risks through “strategic sourcing” and lobbying policymakers. The company announced a $120mn supplier park in Illinois on Monday.

The company also said that tariffs would raise its capital expenditures for the year, echoing other US companies across many industries that have warned of higher spending as a result of the trade levies. Rivian now expects capex in a range of $1.8bn to $1.9bn, from a range three months ago of $1.6bn to $1.7bn.

The group stuck with its original forecast for adjusted earnings before interest, taxes, depreciation and amortisation, though rivals have pulled theirs. Rivian still expects to lose between $1.7bn and $1.9bn in 2025.

Rivian shares were down 1 per cent in after-hours trading on Tuesday.

The Trump administration’s tariffs are forcing carmakers to shoulder billions in additional cost, which may eventually be paid by consumers. General Motors said last week it expected tariffs would add up to $5bn in cost to its operations, while Ford predicted a $1.5bn hit.

Michigan consultancy Anderson Economic Group has estimated that tariffs will add at least $2,000 to the cost of making even the least-affected models. Electric vehicles are particularly vulnerable to higher costs, with the burden from tariffs adding between $10,000 and $12,000.

Rivian reported a gross profit for the quarter — the second in its history — of $206mn. In the same period last year, it lost $527mn.