Rivian Stock Reacts to Sharp Drop in Deliveries Amid Tariff Woes
Rivian, the electric vehicle (EV) startup that once turned heads with bold promises, is now facing a tough road. In the second quarter of 2025, it reported a sharp 22.7% drop in vehicle deliveries. That’s not a small dip; it’s a major warning sign. At the same time, Rivian stock and production also slowed down, adding more fuel to investor worries.
The EV market isn’t easy anymore. High interest rates, price-conscious buyers, and trade tensions are making it harder for companies like Rivian to grow. One big issue right now is tariffs. These are extra taxes on goods imported into the U.S., and they’re pushing up Rivian’s production costs.
We’ll look at what caused the delivery slump, how tariffs are hurting the business, what the company is doing about it, and what all this means for investors.
Rivian Stock Dips After Sharp Drop in Deliveries Amid Tariff Squeeze
Q2 Delivery & Production Fallout
Rivian delivered 10,661 vehicles in Q2 2025. That’s a big drop, 22.7% less than last year and just inside analyst forecasts.
On the production side, Rivian built only 5,979 vehicles. That’s well below expectations of around 11,330 units.
The downturn happened because Rivian paused output. They’re prepping for refreshed 2026 versions of the R1T truck and R1S SUV.
Tariff Pressures & Rising Costs
New U.S. tariffs on imported auto parts are hitting hard. Even though Rivian builds in Illinois, it imports key materials like battery cells. These tariffs add several thousand dollars to each vehicle, up to $10,000-$12,000 more per unit.
Rivian quickly responded by raising its 2025 cap-ex forecast to $1.8-1.9 billion (from $1.6-1.7 billion).
They’re investing $120 million in a supplier park in Illinois. That move should help cut future costs.
Softening Demand & Tax Credit Risks
Consumers are pulling back from EVs. With interest rates still high, some are choosing cheaper hybrids or gas cars.
Also, a Senate proposal could end the $7,500 EV tax credit and $4,000 used-EV credit by late September.
Rivian sidestepped the direct loss of the credit, but it depends on leasing loopholes. Those may disappear, raising vehicle costs for customers.
Market Reaction & Rivian Stock Performance
Investors took note. Rivian’s shares slid about 3.5% after the delivery report hit the wires.
Business Insider noted the stock fell 4.45% on the day’s close.
That mirrors a pattern across EV makers. Tesla also saw Q2 delivery declines, and its stock showed similar volatility.
Rivian’s Strategic Response
Rivian didn’t back down. They restated their full-year delivery outlook: 40,000-46,000 vehicles.
The refreshed R1T and R1S models drop soon, with the cheaper R2 SUV on track for 2026.
They’re building the $120 million supplier park near their factory to manage costs. Rivian is also lobbying Washington and diversifying supply lines to fight tariffs.
Near‑Term Risks & Long‑Term Prospects
Risks
- Tariffs may stay high and keep costs elevated.
- EV tax credits could vanish, making Rivian less competitive.
- High interest rates may keep buyers away.
- New model launches like R2 must succeed to maintain momentum.
Opportunities
- Rivian has reported two straight profitable quarters and $206 million in gross profit in Q1.
- VW’s $1 billion investment strengthens Rivian’s balance sheet.
- Supplier Park builds supply chain resilience.
- Made-in-USA branding could help offset tariff worries.
What does this mean for Investors?
If Rivian pulls off the R2 launch and holds margins, the stock could rebound. But continued tariff friction and policy uncertainty could lead to volatility.
Keep an eye on Q2 earnings on August 5. Watch how Rivian discusses tariffs, costs, and R2 progress.
Wrap Up
We can see that Rivian’s Q2 delivery drop is more than a temporary glitch. It reflects a mix of strategic production pause and real pressure on costs and demand.
Tariffs are ripping through the EV supply chain. Credit cuts may discourage buyers. Yet Rivian is fighting back. They’ve kept yearly guidance, built a supplier park, and secured fresh investment.
The next few months will be vital. If the R2 launch succeeds and costs stay under control, Rivian could turn this challenge into momentum. Investors should follow the August 5 earnings, tariff policy news, and R2 updates closely.
Frequently Asked Questions (FAQs)
Rivian’s stock dropped due to fewer vehicle deliveries, rising costs, and market worries about tariffs and EV demand. Investors are unsure about the company’s short-term growth.
Yes, Rivian’s sales dropped in recent months. In Q2 2025, deliveries fell by over 22% as the company paused production to update its vehicles.
Rivian still expects to deliver between 40,000 and 46,000 vehicles in 2025. This includes updated models and plans to increase output later in the year.
Rivian faces higher costs from tariffs, reduced tax credits, tough EV competition, and possible lower demand due to high interest rates and global uncertainty.
Amazon ended its exclusive deal with Rivian in 2023. This allowed both sides to explore other partnerships, but it didn’t fully cut ties with Rivian.
Rivian is not profitable yet, but it recently posted gross profits and got a $1 billion investment from Volkswagen. Still, it must control spending and grow sales.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.