Tesla and Rivian stocks face mixed outlook amid EV market shifts

Published 03/07/2025, 14:16
© Reuters

Investing.com - Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN) both reported declines in electric vehicle sales for the second quarter, according to Benchmark analysis shared with clients. For Rivian, which currently maintains a market capitalization of $15.4 billion, this decline comes despite strong analyst confidence, with 13 analysts recently revising their earnings expectations upward for the upcoming period.

The downward trend wasn’t limited to these two manufacturers, as Ford also experienced decreased EV sales in the same period, while General Motors (NYSE:GM) stood out with over 100% year-over-year growth, delivering approximately 46,000 EVs as new models boosted its volumes. According to InvestingPro data, Rivian maintains a healthy financial position with a current ratio of 3.73, indicating strong short-term liquidity.

Benchmark analyst Mickey Legg suggested that some demand may have been pulled forward in anticipation of price increases expected later this year when new tariffs take effect, contributing to robust first-half sales despite the recent quarterly decline.

Looking ahead, Benchmark expressed caution regarding overall industry growth due to macroeconomic uncertainties, but identified specific growth opportunities for both Tesla and Rivian.

For Tesla, these potential growth drivers include model refreshes, progress on the Robotaxi platform, and longer-term potential from Optimus robotics, while Rivian’s growth prospects are expected to come from new models supported by what Benchmark described as a solid balance sheet.

In other recent news, Rivian Automotive reported the production of 5,979 vehicles and the delivery of 10,661 vehicles in the second quarter of 2025. This production figure fell short of analyst expectations of over 11,300 vehicles, which the company attributed to preparations for the upcoming 2026 model year vehicles. Despite this, Rivian reaffirmed its full-year 2025 delivery guidance of 40,000 to 46,000 vehicles. The company secured a $1 billion equity investment from Volkswagen (ETR:VOWG_p) Group, part of a larger $5.8 billion agreement related to a technology joint venture. Mizuho (NYSE:MFG) maintained its Neutral rating on Rivian, noting that the R2 model launch remains on track for 2026. In a strategic move, Rivian cut approximately 140 manufacturing jobs to improve operational efficiency ahead of the R2 SUV launch. Cantor Fitzgerald reiterated its Overweight rating on Rivian following the company’s announcement to raise $1.25 billion through a private offering of green notes. Rivian also announced the hiring of Kyle Nees as Senior Director of Vehicle Programs, further strengthening its leadership team.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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