Rivian shares slip amid wider second-quarter loss and supply chain issues

Published 05/08/2025, 21:24
Updated 06/08/2025, 09:48
© Reuters

Investing.com -- Shares of Rivian Automotive (NASDAQ:RIVN) fell more than 4% in premarket trading on Wednesday after the electric carmaker’s second-quarter loss was worse than expected amid trade-related supply chain disruptions.

Rivian posted an adjusted loss of 97 cents per share for the quarter, missing analysts’ expectations of loss of 66 cents.

Revenue came in at $1.3 billion, in line with consensus forecasts.

Vehicle production fell to 5,979 units, down from 13,980 in the previous quarter, as Rivian pointed to supply chain constraints tied to shifts in trade policy.

Meanwhile, a move by the Trump administration to scrap a rule penalizing companies for not meeting fuel economy standards has dented demand for regulatory credits, which Rivian and peer Lucid (NASDAQ:LCID) have been selling to traditional car manufacturers looking to evade emissions fines.

These credits -- now seen at about half of Rivian’s initial estimate of $300 million -- were cited as a key reason for the increased loss estimate. In the second half, no revenues from these credits are anticipated to flow in, Rivian warned.

The company reaffirmed its full-year delivery guidance of 40,000 to 46,000 vehicles, but raised its annual adjusted core loss projection to $2.0 billion to $2.25 billion.

Rivian said it will temporarily shut down its Illinois plant for about three weeks in September to expand production capacity to roughly 215,000 units annually, as it prepares for the expected roll-out of its more affordable R2 sport-utility vehicle next year.

"The future of Rivian hinges on R2 product success; it could be a company and industry game changer," strategists at Canaccord Genuity argued in a recent note.

(Pratyush Thakur contributed reporting.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.