Rivian produced 5,979 vehicles this quarter—posting a significant drop from the 14,611 a quarter prior—but deliveries exceeded those of the first quarter by a comfortable margin.
The EV maker is getting ready for R2 model production to start later this year, giving its lineup a distinctly new option.
Rivian also widened its projected 2025 EBITDA loss from between $1.7 and $1.9 billion to between $2 and $2.25 billion.
The year may have begun for EV makers on a bright note, with Elon Musk in the White House and presumably with an EV-friendly agenda within the federal government.
But this rosy picture quickly crumbled as details of an extensive tariff program were revealed in rapid succession, impacting the price and logistics of critical materials necessary for EV production, while attempting to reshore nearby auto plants in Canada and Mexico.
Now, just less than seven months since Donald Trump and Elon Musk entered the White House, the EV landscape is weeks away from the disappearance of the $7,500 EV tax credit (largely a factor when it comes to leasing a Rivian), and the EV industry is under unprecedented strain that saw many automakers withdraw their 2025 guidance at the start of the year.
Rivian is one of the few EV makers with an exclusively US-only manufacturing presence, yet it is still feeling the second- and third-order effects of the extensive agenda of the new White House when it comes to manufacturing.
Starting with the good news, Rivian received a $1 billion equity investment from Volkswagen Group at the end of June, as part of a $5.8 billion investment in technology sharing.
"This quarter we made significant progress in R2 development and testing," RJ Scaringe, Rivian Founder and CEO, said in a letter to shareholders.
On Track for R2 Launch This Year
"We also substantially completed the expansion of our Normal, Illinois, facility and have begun installing manufacturing equipment in preparation for our start of production."
Another piece of good news is that preparations for the launch of the R2 lineup are still moving forward in Normal, with the site largely complete and on track for a commissioning in the third quarter of this year.
This means R2 models are expected to roll out of the factory later this year, but the site will still have to endure a three-week production shutdown in September.
The slightly bad news was that the EV maker produced 5,979 vehicles this quarter—a significant drop from 14,611 in the first quarter—even though deliveries exceeded those of the first quarter by a comfortable margin, with 10,661 new Rivians finding homes compared to 8,640 in the first three months of the year.
Why the lopsided result?
"Production during the second quarter for both R1 products and commercial vans was limited primarily due to a variety of supply chain complexities partially driven by shifts in trade policy," the EV maker noted, alluding to the shifting costs and sources of materials for its vehicles.
In addition to not posting a profit, the company widened its loss projection owing to the upcoming loss of the EV tax credit for consumers, which has yet to be fully felt by the automaker.
As a result, Rivian has adjusted its projected 2025 EBITDA loss from between $1.7 and $1.9 billion to between $2 and $2.25 billion.
In Q2, Rivian posted an adjusted EBITDA loss of $667 million, down from $857 million a year ago.
So there is still some rough sailing ahead in 2025.
Will the smaller R2 be a hit in the marketplace, or will it remain a niche item owing to Rivian's relatively modest presence in the EV sphere? Please comment below.
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