Rivian Drops 5.2% In Premarket Trading After Disappointing Vehicle Delivery Outlook

Rivian Automotive RIVN shares are down 5.2% in pre-market trading on Friday after the company said that it expects to deliver between 46,000 and 51,000 vehicles in 2025, less than the 51,579 deliveries reported in 2024.

What Happened: The company said that it expects deliveries to be about 8000 in the first quarter due to lower commercial vehicle deliveries as well as seasonality and a challenging demand environment for consumer vehicles.

The company will instead focus on building inventory in the first quarter to help mitigate the impact of a planned shutdown in the second half of the year to prepare for the start of production of its R2 vehicle, it said. The company will shut down the plant for about a month to integrate the R2 manufacturing line, company CEO RJ Scaringe said during the company’s fourth-quarter earnings call on Thursday.

Production of Rivian’s R2 vehicle, priced around $45,000, is expected to start in the first half of 2026 at the company’s factory in Illinois.

“We remain steadfast in our belief that R2 will be truly transformative for our growth and profitability,” company CFO Claire McDonough said.

Gearing For Potential Regulatory Changes: Rivian warned that the outlook reflects the management’s current view on potential adjustments to incentives, regulations, and tariff structures under the Trump administration. These are, however, external factors outside of the company’s control and could change, McDonough noted.

The company has also weighed in on the possibility of the $7,500 tax credit on the purchase of EVs getting dropped under the new administration, Scaringe said.

“We’ve architected the business and we’ve built in a lot of flexibility in terms of vehicle configuration (for R2) and, therefore, pricing associated with different models or variants that contemplates both a world with the $7,500 credit and a world without the $7,500 credit,” he said.

Q4 Results: Rivian reported a positive quarterly gross profit for the first time on Thursday. The company reported $170 million in gross profit for the three months through the end of December, compared to a loss of $606 million a year ago, owing to reduced cost, sale of regulatory credits, and higher average selling price on its vehicles.

The company also reported quarterly revenue of $1.73 billion beating a Street consensus estimate of $1.4 billion.

The company reported an adjusted loss of 46 cents per share in the quarter, beating a Street estimate of a loss of 65 cents per share.

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