Rivian Widens 2025 Loss Forecast, Citing Tariffs and EV Tax Credit Phase-Out

Rivian (NASDAQ:RIVN) posted mixed Q2 2025 results Tuesday, missing profit expectations and widening its full-year loss forecast, as new tariffs and the upcoming expiration of U.S. EV tax credits cloud its near-term outlook. 

Shares of Rivian dropped more than 5% in after-hours trading following the announcement.

Production holds, but profitability slips

For Q2 2025, Rivian reported a net loss per share of $0.97 versus the $0.77 loss analysts had expected. Its adjusted EBITDA loss came in at $667 million, wider than consensus estimates of $493 million. 

The company produced 5,979 vehicles and delivered 10,661, slightly under expectations. Rivian attributed the production dip to factory retooling for model year 2026 vehicles.

The electric vehicle startup reported $1.303 billion in revenue, slightly beating expectations of $1.28 billion as per Bloomberg consensus estimates, according to a Yahoo Finance report. Rivian, however, missed on earnings and failed to post a gross profit for the first time in three quarters.

What Rivian is Expecting

The company now expects a full-year adjusted EBITDA loss of $2.0 to $2.25 billion, up from its earlier forecast of $1.7 to $1.9 billion. Rivian cited ongoing macroeconomic pressures, including 25% tariffs on EVs and parts and the planned end of the U.S. federal EV tax credit on September 30, under the Trump administration’s revised policies.

Despite the challenges, Rivian reaffirmed its 2025 delivery target of 40,000 to 46,000 vehicles. The company also announced a planned three-week factory shutdown in September to prepare for its upcoming R2 midsize SUV.

R2 SUV development gains momentum

CEO RJ Scaringe emphasized progress on the R2 program: “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.” 

The R2 remains on track for production in 2026. Analysts are also closely watching Rivian’s $5.8 billion joint venture with Volkswagen, as well as its autonomy and software development pipeline.

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