Rivian Automotive experienced a significant 22.7% decrease in second-quarter delivery numbers because of ongoing electric vehicle market challenges from trade tariffs and high borrowing costs. The EV manufacturer delivered 10,661 vehicles during the June 30 quarter which matched market predictions yet represented a significant decrease from previous year results.
The stock price declined by 3.5% during the initial market hours. The company produced 5,979 vehicles which fell short of the 11,330 units predicted by Visible Alpha analysts. The company attributed its production shortfall to its work on new versions of its R1T truck and R1S SUV.
The Trump administration’s tariffs have caused industry-wide cost increases which force manufacturers to redesign their supply networks. The market shift toward hybrid and gasoline-powered vehicles occurs because consumers avoid the high prices and maintenance expenses of electric vehicles.
Rivian keeps its annual delivery target between 40,000 and 46,000 units but needs to maintain profit margins. The EV tax credit elimination plans from U.S. lawmakers will create an intensified challenge for the company.
Rivian obtained a $1 billion equity investment from Volkswagen during May as part of its $5.8 billion joint venture to enhance scale and reduce costs before launching the R2 SUV in the following year.
