logo
Despite VW JV and New Cargo Van, Rivian Expects a Challenging 2025

Despite VW JV and New Cargo Van, Rivian Expects a Challenging 2025

Yahoo24-02-2025

Rivian produced 49,476 vehicles in 2024 and delivered a total of 51,579 but is forecasting a slight decline in 2025 owing to multiple factors.
The EV maker expects a "challenging demand environment" in 2025, also citing changes to government regulations and policies, which are expected to include the demise of the $7,500 tax credit.
Rivian is getting ready for the start of R2 production in 2026, which will consume some financial resources and factory prep time later this year.
Rivian is one of just a handful of EV startups from the 2010s that have survived into the present day, making the perilous journey from concept to mass production. But surviving into 2025 does not necessarily mean smooth sailing.
The EV maker revealed its fourth quarter results a few days ago, hitting generally positive notes headlined by achieving a gross profit of $170 million. The EV maker also saw record revenues in 2024, and it cited the sale of regulatory credits along with higher average selling prices of its R1 models, among other factors.
The automaker said it produced 49,476 vehicles in 2024 and delivered 51,579.
"In 2024 more than 1 billion packages were delivered by Amazon in the Rivian Electric Delivery Van (EDV) in the US alone," the EV maker noted, adding that it had begun to offer its smaller Rivian Commercial Van (RCV) to non-fleet commercial buyers earlier this month, such as small businesses.
Rivian also entered into a joint venture with VW in 2024, with a deal worth up to $5.8 billion that will bring Rivian tech to Volkswagen's Scout brand, in addition to other goals.
But there are still a few clouds on the horizon when it comes to repeating this feat this year.
"We believe external factors could impact our 2025 expectations, including changes to government policies and regulations, and a challenging demand environment," the automaker said in a letter to shareholders. "While uncertainties persist, we remain focused on executing against our key value drivers and are confident in electrifying the world in the long term."
It's not too hard to guess just what regulatory challenges Rivian expects to see this year, with the fate of the $7,500 tax credit being just one of the factors.
That credit is still expected to depart, perhaps quite abruptly, though the specific timing of its demise remains uncertain. Other automakers are already factoring in the loss of federal incentives sometime in 2025 in their outlook for this year.
In citing a challenging demand environment, Rivian is referring to the slowdown in EV sales that began in late 2023, prompting quite a few automaker to drop prices repeatedly over the course of several weeks and months, as the EV adoption rate in the US showed signs of plateauing.
Rivian has not been immune to this trend, though it has navigated it better than some other, much larger automakers.
But as a result, Rivian cautions that it expects to deliver 46,000 to 51,000 vehicles in 2025, just a bit south of the number delivered in 2024.
"Rivian's guidance represents management's current view on potential adjustments to incentives, regulations, and tariff structures," the automaker noted, hinting at the remaining uncertainty in regards to tariffs that could produce one of the most consequential shake-ups in the EV industry's short history.
The Trump administration has indicated in recent days that tariffs of approximately 25% will be levied on imported automobiles as soon as April 2, 2025, but is expected to clarify the matter sometime prior to or on that precise date.
Rivian does not have a manufacturing footprint outside the US, but it could easily suffer various downstream effects of the imposed tariffs that will affect vehicle component suppliers.
Rivian also expects to see expenses relating to the planned start of R2 production in 2026, which will affect its financial resources later this year, though should pay healthy dividends in 2026 when deliveries start.
"We recently completed our first tooling trials for some of the key stamped body panels," the automaker noted. "The R2 body has been heavily optimized around cost with a focus on minimizing complexity. For example, the R2 utilizes a number of large high-pressure die castings to eliminate parts and connection points."
In preparation for the start of production, the EV maker's plant in Normal, Illinois, is expected to see some preparatory work and some footprint expansion.
Ahead of the R2 launch, Rivian will also grow its service network with plans to open 30 new service locations through the course of the year.
Rivian is certainly not alone in expecting a rocky 2025, but we have a feeling that some of the more consequential events for the EV industry will be ones not anticipated by automakers at the moment.
Will the departure of the $7,500 tax credit affect purchasing decisions for buyers of EVs priced above the $60,000 mark? Let us know what you think in the comments below.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Our Favorite Solar Wireless Outdoor Camera Drops on Amazon, Now Cheaper Than Black Friday and Prime Day
Our Favorite Solar Wireless Outdoor Camera Drops on Amazon, Now Cheaper Than Black Friday and Prime Day

Gizmodo

time16 minutes ago

  • Gizmodo

Our Favorite Solar Wireless Outdoor Camera Drops on Amazon, Now Cheaper Than Black Friday and Prime Day

This is the easiest outdoor security camera to use on the market. Outdoor security cameras have transformed home safety and offer peace of mind and a sense of control – except for those nagging issues of battery life and the hassle of running cables. That's where the eufy Security SoloCam S340 steps in, breaks those barriers and sets a new standard for wireless surveillance. Today only, this top-rated product can be had for an all-time low of $159 on Amazon, a 20% discount from its regular $199 list price. See at Amazon Our Favorite Brand for Home Security eufy is a subsidiary of Anker and it has gained a reputation for greatness in the field of smart home. The SoloCam S340 is one product among many that showcases their innovation in terms of design and user experience. This camera is designed to address the two main frustrations with outdoor security cameras: 1) change batteries too often or 2) use a wired setup which may be limited in any direction. With its wireless connectivity and solar-powered battery, you can position the camera anywhere outside your home far inside your garden, front of your side house, or even at the back end of your home. It's easy to install: no extensive wiring is required, and you don't even need to hire a professional. In only five minutes, you'll have an operational and high-tech guard for your home. One of the major attractions that this SoloCam S340 has is an improved dual-camera system that allows for ultra-sharp 3K resolution as far away as 50 feet. This way, you will be able to see all that's happening outside your home whatever time of day it is. The 8× zoom with this camera lets you capture a close-up shot of anyone approaching your house so nothing escapes you. While the maximum resolution drops to 2K when using AI Tracking or Dual Views, the quality remains sharp and reliable for most home security needs. The SoloCam S340 also eliminates blind spots: Thanks to its 360° pan and tilt capabilities, you can monitor every corner of your property from a single, strategically placed camera. Whether you want to keep an eye on your front porch, backyard or driveway, this camera covers it all. The vertical installation option further enhances its versatility, allowing you to customize the viewing angle for maximum coverage. A second major advantage is the camera's solar operation: The easily removable built-in solar panel lets you install the camera and then forget it. No need to reach a ladder to replace batteries or to disconnect cables. The camera remains always powered and ready to protect your home and powered by clean energy. The eufy Security SoloCam S340 is a home security game-changer. Make sure you grab yours before it runs out of stock. See at Amazon

This LEGO Formula 1 Mystery Box Set Is Almost Free and Comes With Six Surprise Race Cars
This LEGO Formula 1 Mystery Box Set Is Almost Free and Comes With Six Surprise Race Cars

Gizmodo

time34 minutes ago

  • Gizmodo

This LEGO Formula 1 Mystery Box Set Is Almost Free and Comes With Six Surprise Race Cars

Who doesn't love Lego? Appealing to folks of all ages, Lego makes for wonderful gifts or collectors items. Those massive sets like the Death Star from Star Wars are all about the build. Slowly putting it together brick by brick. But while many Lego sets are like that, with a huge number of total pieces designed to be displayed after you finished, some are more about the play that comes after. That's exactly what these Formula 1 cars are for. Perfect for boys and girls alike, this mystery box of F1 race cars make for a wonderful gift. Normally priced at $30, right now you can score a box for just $20. That's a nice 33% discount you get to hold onto. See at Amazon Built for Play This set of collectible Formula 1 Lego race cars comes with six unique models. You won't know which six you'll get until you open the box. There are a total of 12 mini race cars to collect in all different color combinations. They include the RB20, Mercedes-AMG, Ferrari, McLaren, Aston Martin, Alpine, Williams, VCARB, Sauber, Haas, F1 car, F1 Academy car, and more. They each feature the authentic team colors and official logos. Each box contains 174 pieces which works out to 29 pieces per race car, with easy instructions that anyone ages six and up will be able to follow and have fun doing so. Each car comes with an F1 helmet to place in the cockpit and moving wheels. You can actually play with and race your Formula 1 race cars once you've finished building them.

Apple's AirPods Pro 2 drop to $169 on Amazon
Apple's AirPods Pro 2 drop to $169 on Amazon

Engadget

time35 minutes ago

  • Engadget

Apple's AirPods Pro 2 drop to $169 on Amazon

Now's a good time to pick up a new pair of AirPods while the AirPods Pro 2 are on sale for $169 on Amazon. This is close to their record-low price and a 32-percent discount. For those enmeshed in the Apple ecosystem, you'll be hard-pressed to find a better pair of wireless earbuds. These buds quickly pair with iPhones, iPads and Macs and switch seamlessly between them when you're multitasking. ANC is solid and Apple's transparency mode is one of the best we've tried. This is a discount of 32 percent. $170 at Amazon They also sound great, thanks to a new amplifier, driver and transducer, in addition to updated algorithms. We found that they offered a "massively improved" experience over the first-gen version of these earbuds. Music even sounds better at lower levels here, which is something we noticed in our official review. The battery life is just average, with six hours of listening per charge and 30 hours with the case. The major downside with these earbuds is the price. No matter how you slice it, $249 is a whole lot of money. Luckily, today's sale alleviates some of that sticker shock. Check out our coverage of the best Apple deals for more discounts, and follow @EngadgetDeals on X for the latest tech deals and buying advice.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store