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Auto Blog
5 days ago
- Automotive
- Auto Blog
Rivian Reports $1.1B Q2 Loss But Holds 2025 Delivery Forecast
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Rivian's Q2 earnings are out, and while the EV startup posted another sizable loss — $1.1 billion — the company is standing by its full-year delivery guidance of 40,000 to 46,000 vehicles. That's despite continued cost pressures, weakening regulatory credit income, and delivery volumes that came in lighter than expected. Revenue for the quarter was $1.3 billion, up slightly year-over-year and just ahead of analyst estimates, but still well below what investors were hoping for. The company's adjusted loss per share landed at $0.80, missing expectations by $0.04. Production Down, Losses Up Rivian produced 5,979 vehicles and delivered 10,661 in Q2, both down significantly compared to last year. The company said the dip is tied to planned factory retooling ahead of the launch of its upcoming R2 SUV — a mid-size, sub-$50,000 model aimed squarely at volume growth from 2026 onward. That said, costs per vehicle remain steep. On average, Rivian spent $118,375 to build each EV last quarter, thanks to inflationary headwinds, rare earth material constraints, and reduced EV tax credit access. Regulatory credits, which once padded the balance sheet, are now expected to bring in just $160 million this year — nearly half the earlier forecast. Rivian's full-year EBITDA loss guidance has now widened to $2.0–$2.25 billion, from its previous $1.7–$1.9 billion range. Source: Rivian What's Next: R2, Repositioning, and Relevance Despite its financial drag, Rivian is focusing heavily on its upcoming R2 platform, with pilot builds already underway and capital expenditures projected at $1.8–$1.9 billion for the year. Positioned to compete in a broader, more price-sensitive segment, the R2 is intended to do what the brand's flagship R1T and R1S models have struggled with: reach beyond the enthusiast core and connect with everyday buyers. While updates to the 2025 R1T and R1S have refined the platform's feel and responsiveness, the vehicles still carry high price tags — and aren't resonating with all the right audiences. A recent S&P Global study found that Rivian continues to underperform with female buyers, a demographic that legacy brands like Ford and Toyota increasingly view as central to their EV strategy. Still, Rivian is doubling down on brand appeal. This summer, it brought back its most viral party trick: Tank Turn, the feature that lets the R1S or R1T rotate in place like an off-road hovercraft. First teased back in 2019, the quad-motor function never actually reached customers — but that's set to change, as Rivian looks to reignite attention in its existing lineup ahead of the R2 rollout. Takeaway It's another quarter of deep red ink for Rivian, but the message from CEO RJ Scaringe is steady: losses are expected, scale is coming, and R2 is the hinge point. Whether that's enough to calm Wall Street remains to be seen — but for now, the company isn't blinking. About the Author Max Taylor View Profile
Economic Times
5 days ago
- Automotive
- Economic Times
Rivian earnings shock triggers stock plunge—Q2 miss and $2.25B loss spark 4% drop as EV credit cut, Trump tariffs fuel panic sell-off
Rivian (NASDAQ: RIVN) reported a sharp Q2 2025 earnings miss on Tuesday, sending its stock down over 4% in after-hours trading. The electric vehicle maker posted a larger-than-expected net loss of $1.1 billion, or $0.80 per share, falling short of analyst expectations. Revenue came in at $1.30 billion, slightly above forecasts, but vehicle deliveries dropped to 10,661 units, down 23% year-over-year. Rivian also widened its 2025 full-year loss projection to $2.25 billion, citing rising production costs, the loss of EV tax credits, and new Trump-era tariffs. The market reacted swiftly, triggering a wave of investor sell-offs. Rivian stock drops as Q2 earnings miss expectations and 2025 loss forecast widens amid EV tax credit blow and tariffs: The electric truck maker reported mixed Q2 2025 earnings, delivered fewer vehicles than expected, and projected a much deeper full-year loss. The company is now facing the heat from Donald Trump's new EV tax credit restrictions, rising tariffs, and reduced regulatory credit income. Despite steady progress on its highly anticipated R2 SUV, Rivian stock took a hit after the update, trading around $12.15, down over 4% in after-hours. Rivian's Q2 numbers reflected a sharp slowdown in both production and deliveries as it paused operations to prep for refreshed models. The company delivered 10,661 vehicles in the second quarter, down nearly 23% year-over-year, while producing only 5,979 units—well below market expectations. Revenue came in at around $1.30 billion, which was just slightly ahead of analyst forecasts but didn't offset the other disappointments. The biggest shock came in the form of Rivian's adjusted loss of $0.80 per share, significantly wider than Wall Street's expected $0.65–$0.66 loss. In total, Rivian posted a net loss of $1.1 billion, which was still an improvement from the $1.5 billion loss it reported in Q2 2024, but investors weren't impressed. One of the key pain points for Rivian right now is the impact of Trump's recent EV tax credit overhaul, which closed off the leasing loophole that previously allowed Rivian buyers to indirectly qualify for the $7,500 federal EV credit. That credit had become a critical tool for boosting Rivian's revenue through leasing channels. Adding to the pressure, tariffs on Chinese components and raw materials have raised production costs—especially for battery and motor components that depend on rare earth elements. These policy changes have created 'significant uncertainty,' the company noted, and are eating into margins. As a result, Rivian has revised its 2025 loss forecast upward to between $2.0 billion and $2.25 billion, from the earlier range of $1.7 billion to $1.9 billion. While short-term headwinds dominate the headlines, Rivian is betting big on the future. The company reaffirmed that development of its new R2 electric SUV is moving ahead as planned. The mid-size SUV is expected to start production in the first half of 2026, with a targeted starting price of $45,000. To reduce costs and improve profitability, Rivian is leaning on its strategic partnership with Volkswagen, which aims to bring down the R2's bill of materials to around $32,000 per vehicle—a significant margin improvement. Rivian believes this mass-market EV could be the turning point it needs, especially if it can deliver strong range, quality, and pricing at scale. Even with declining Q2 numbers, Rivian is sticking to its full-year 2025 delivery forecast of 40,000 to 46,000 vehicles. The company expects a bump in Q3 as buyers rush to purchase before the remaining tax incentives disappear at the end of September. Still, it's a race against time—and uncertainty looms. The loss of the leasing workaround for tax credits, combined with rising costs from tariffs and component shortages, could put further pressure on deliveries. Following the mixed results and updated guidance, Rivian stock (NASDAQ: RIVN) fell over 4% in after-hours trading. As of the latest data, the stock is priced around $12.15, down from an open of $12.48, with a trading range between $11.05 and $12.57 for the day. Investor sentiment remains cautious. While analysts acknowledge Rivian's long-term potential, many maintain 'Hold' ratings, citing execution risks and policy challenges. Price targets are hovering in the $12 to $15 range for now. Despite near-term volatility, Rivian still holds promise as a key player in the EV space. The upcoming R2 launch, the Volkswagen collaboration, and a potential rebound in U.S. EV demand could help turn the tide—but not without risks. With ongoing macro headwinds, policy changes, and competitive pressure from Tesla and legacy automakers, Rivian has a steep hill to climb. But if it can deliver on its cost-cutting roadmap and scale R2 production efficiently, there's still room for upside. Metric Q2 2025 Data Vehicle Deliveries 10,661 units (‑23% YoY) Production 5,979 units Revenue ~$1.30 billion Adjusted EPS Loss ‑$0.80 per share Net Loss $1.1 billion 2025 Loss Forecast $2.0–$2.25 billion (revised upward) Stock Price (Post-Earnings) ~$12.15 (-4% after-hours) R2 SUV Launch H1 2026, starting at $45,000 Rivian's latest earnings show a company caught between a bold vision and brutal realities. With earnings falling short, production slowing, and policy winds shifting, the road ahead won't be easy. But with the R2 SUV on the horizon and a clear plan to cut costs, Rivian's long game may still be intact. If you're tracking EV stocks in 2025, Rivian remains one of the most watched tickers on Wall Street—but it's now a test of time, execution, and whether it can survive the short-term storm to reach long-term scale. FAQs: Q1: Why did Rivian stock drop after Q2 2025 earnings? Rivian stock fell due to weak Q2 earnings, wider loss forecasts, and pressure from EV tax credit cuts and tariffs. Q2: What's impacting Rivian's future outlook in 2025? Rivian's outlook is hurt by rising costs, Trump's tariffs, and the end of key EV tax credits.
Yahoo
6 days ago
- Automotive
- Yahoo
Rivian reports mixed Q2 results, widens 2025 loss projection as tariffs & loss of EV tax credit bite
Rivian (RIVN) reported mixed second quarter earnings after the bell on Tuesday, and did not report a gross profit as policy changes like tariffs blunted its performance. The company also widened its full-year loss projection as trade wars and the loss of EV tax credits blunt Rivian's path towards profitability. Rivian said recent policy actions are expected to "continue to have an impact on its results and cash flows of its business," and because of some of the recent changes associated with regulatory credits and its second quarter performance, the company is increasing its adjusted 2025 full-year EBITDA (earnings before interest, taxes, depreciation, and amortization) before interest loss range to $2.0 billion to $2.25 billion, from $1.7 billion to $1.9 billion previously. Recent policy changes include the Trump administration phasing out the EV tax credit, set to expire on September 30, as well as sector tariffs of 25% on autos and auto parts. Rivian stock was lower in after-hours trading. For the quarter, Rivian reported revenue of $1.303 billion vs $1.28 billion per Bloomberg consensus estimates, higher than the $1.158 billion reported a year ago. The company posted an EPS loss of $0.97 vs $0.77, with an adjusted EBITDA loss of $667 million vs. $493 million expected. Rivian also did not post gross profit for the quarter, which it had done the last two prior quarters. On the positive front, Rivian said development of its upcoming R2 midsize SUV is progressing. 'This quarter we made significant progress in R2 development and testing. We also substantially completed the expansion of our Normal, Illinois facility and have begun installing manufacturing equipment in preparation for our start of production," CEO RJ Scaringe said in a statement. Rivian said it expects to commission the new R2 line in the third quarter of this year and start validating the equipment and production processes. The R2 is slated for production in 2026. The company said in early July that it produced 5,979 vehicles at its factory in Normal, Ill., and delivered 10,661 vehicles during the second quarter, slightly below analysts' consensus of 10,800. Production was limited during the quarter in preparation for model year 2026 vehicles, expected to launch later this month, the company said. Read more: Live coverage of corporate earnings Rivian reaffirmed its 2025 delivery guidance range of 40,000 to 46,000 vehicles, but it will shut down its factory for three weeks in September for R2 preparations, and in order to increase manufacturing capacity to 215,000 units. "On the call, we'll be looking for further detail on Rivian's progress with its Volkswagen Joint Venture (total deal size of ~$5.8B), and on the company's progress towards autonomy, and towards commercializing its R2 line, which is slated for SOP [start of production] in 1H26," Cantor Fitzgerald analyst Andres Sheppard wrote. Deutsche Bank's Edison Yu added that R2 prototypes have been seen in the wild, further suggesting that 2026 production is in the cards, but there are still headwinds for the business overall. "Heading into 2H, we worry that EV policy headwinds could keep a lid on the stock," he wrote in late July. "Moreover, the company is expected to experience some downtime related to R2, hurting overhead absorption." Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Automotive
- Yahoo
Scout Exec Sees Opportunity In Rivian Layoffs
Scout Exec Sees Opportunity In Rivian Layoffs originally appeared on Autoblog. Rivian last week laid off 140 employees, representing about 1% of its workforce, prompting Jacopo Marzetti, head of logistics at Scout Motors, to encourage them to apply at the Volkswagen Group brand, which aims to launch its first electric vehicles in 2027. "Sympathy and support to the employees impacted by the latest Rivian layoffs," Marzetti wrote Monday in a LinkedIn post. "Have a look to the Scout Motors career website and apply directly to join our team." The post included a link to the Scout career site, which listed 127 job openings at the time of publication covering areas ranging from sales and management of parts supplies, to software development and vehicle engineering. TechCrunch reported last week that most of the Rivian layoffs affected the automaker's manufacturing team, and that employees were being encouraged to apply to other open positions within the company. Both Rivian and Scout are in the midst of production ramp-ups. Rivian is looking to start manufacturing its R2 electric SUV in 2026. First shown in 2024, the R2 is a smaller model with a targeted base price of $45,000 that could open up a wider audience for Rivian, making it key to the automaker's continued development. Scout, meanwhile, is trying to get its first products to customers. A revival of the classic International Harvester Scout name and ethos under the Volkswagen Group aegis, Scout plans to offer an SUV called the Traveler and a pickup truck called the Terra with a choice of all-electric or plug-in hybrid powertrains. The latter, dubbed Harvester, will use a naturally-aspirated four-cylinder engine to extend total range from the estimated 350 miles of all-electric Scout models to about 500 miles. Concept versions of both the Traveler and Terra were shown in late 2023, with designs expected to mostly carry over to production, which would create the closest rivals to the Rivian R1S and R1T we've seen so far. In addition to completing development work on the vehicles themselves, Scout must complete construction of a $2 billion South Carolina factory, which targets up to 200,000 vehicles a year, the brand has said. True to its name, Scout will take a different approach to Rivian—and other VW Group brands—with a body-on-frame platform for maximum authenticity. But Scout will have access to Rivian's zonal electrical architecture and software under a $5.8 billion joint venture between Rivian and the VW Group announced in late 2024. It's still unclear which production vehicles will benefit from this partnership, but Rivian's tech will be in the toolbox Scout can rummage through as it looks to complete development of its rugged new vehicles. Scout Exec Sees Opportunity In Rivian Layoffs first appeared on Autoblog on Jun 30, 2025 This story was originally reported by Autoblog on Jun 30, 2025, where it first appeared.
TechCrunch
26-06-2025
- Automotive
- TechCrunch
Rivian cuts dozens on manufacturing team ahead of R2 launch
Rivian has laid off around 140 employees, or roughly 1% of its workforce, as it prepares for the launch of its more affordable R2 SUV in 2026, TechCrunch has learned. The cuts were mostly made to Rivian's manufacturing team and have been ongoing since Wednesday, according to multiple former employees who were granted anonymity to speak about the layoffs. Some employees were told that the company was eliminating roles that created 'process inefficiencies.' Rivian confirmed the cuts in an email to TechCrunch. 'We have made the difficult decision to reduce a small number of our salaried manufacturing employees as part of an ongoing effort to improve operational efficiency for R2,' a spokesperson wrote. The company said affected employees are being encouraged to apply to other open positions inside the company. Rivian began the year with more than 14,800 workers in North America and Europe, according to its annual filing with the Securities and Exchange Commission. The company has made multiple cuts over the last few years, including a 10% reduction in early 2024, and another layoff of around 1% of staff in April 2024.
