Tariffs Force Rivian to Lower Annual Delivery Outlook
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Rivian Automotive Inc. said full-year deliveries will decline more sharply than it anticipated just a month ago over the risk that consumer worries stoked by President Donald Trump鈥檚 trade war will further dampen demand for electric vehicles.
The company now expects to sell 40,000 to 46,000 battery-powered pickups, SUVs and delivery vans this year, it said May 6 . That鈥檚 down from as many as 51,000 under its prior forecast, which it reaffirmed in early April. Still, the company expects to achieve a modest full-year gross profit.
Reducing its sales outlook shows how Trump鈥檚 tariff policies and related economic worries risk worsening an existing slowdown in EV demand. Rivian鈥檚 earlier guidance had factored in potential impacts from changes to trade and other policies, but Trump has since imposed a flurry of tariffs on U.S. trading partners and a 25% duty on imported vehicles and parts. Those measures and have prompted mainstream U.S. and European automakers to tear up their earnings forecast targets and tally billions of dollars in financial fallout.
Rivian builds all of its cars in the U.S., and said a majority of its components come from U.S. or comply with a free-trade agreement spanning North America. Still, the automaker said it is 鈥渘ot immune to the impacts of the global trade and economic environment.鈥
Rivian鈥檚 first-quarter adjusted loss was 41 cents a share, better than the 79-cent average deficit expected by analysts. The company also reaffirmed its full-year forecast for an adjusted loss before interest, taxes, depreciation and amortization of $1.7 billion to $1.9 billion.
Rivian鈥檚 shares fell less than 1% in after-hours trading in New York.
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