Rivian receives the next $1B from Volkswagen as sales struggles continue
That represents a 23% drop in sales from the second quarter of 2024, and only a slight improvement over Rivian's rough first quarter, when it delivered 8,640 EVs. The company already lowered its sales target for 2025 as a result of President Trump's tariffs and trade wars, all of which make it more expensive to build cars.
Rivian said Wednesday that it still believes it will deliver between 40,000 and 46,000 EVs this year. But even hitting the high end of that range means it will ultimately sell fewer cars in 2025 than it did in either of the prior two years. All this makes things especially tenuous for Rivian, which has historically burned through billions of dollars and is banking a lot of the 2026 release of its more affordable SUV, the R2.
The payout from Volkswagen is the result of Rivian tallying its second-ever gross profit in the first quarter of this year. In 2024, the two automakers announced a technology joint venture worth up to $5.8 billion. Rivian's provided employees, along with its software and electrical architecture designs, to that joint venture. Volkswagen plans to use those underlying technologies to power its future EVs. It provided the first $1 billion to Rivian late last year in the form of a convertible note.
Rivian was only able to hit that gross profit milestone because it spent a lot of money and effort over the last two years simplifying the design of its existing consumer vehicles, the R1S SUV and R1T pickup truck. Those redesigned versions hit the road last year and were dramatically cheaper for Rivian to build, although the company is still losing money overall.
Things could get even more challenging for companies like Rivian if Trump gets what he wants with his so-called proposed 'One Big Beautiful Bill.' This week, that piece of legislation was passed from the U.S. Senate back to the House of Representatives. In its current form it will end the federal EV tax credit, which instantly cuts $7,500 off the price of a new electric vehicle, in September of this year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNET
11 minutes ago
- CNET
Prime Day Begins With Epic July 4th Amazon Device Deals: Save Up to 50% on Smart Speakers, TVs, Tablets and More
You'll find plenty of deals to check out today with Fourth of July sales in full swing and another massive shopping event just around the corner. Amazon's Prime Day sale kicks off in just a few days, on July 8, and it's another great opportunity to grab tons of top tech, home goods and much more at amazing prices. Leading up to the sale, Prime members can already take advantage of some incredible Prime Day discounts on Amazon's own devices, including TVs, smart speakers, security cameras and much more. We've rounded up some of the best offers below, and we'll continue to update this page up to and throughout the sale, so be sure to check back often. Hey, did you know? CNET Deals texts are free, easy and save you money. Best Prime Day deals on Amazon devices Echo Dot with Amazon Basics smart bulb: $37 A nice 41% savings on the Echo Dot smart speaker and an Amazon Basics smart bulb is a great way to add convenience to your day. With Alexa control and automated routines and scheduling, this duo can easily integrate into your Amazon-based smart home. And the color bulb supports 16 million colors, adding whatever ambiance you want to your space. Details Save $26 $37 at Amazon Close Fire TV Soundbar: $85 If you want an affordable but powerful soundbar, this one should cover it. It comes with plenty of great features, which basically means you'll be able to hear your movies and shows much better. Details Save $35 $85 at Amazon Close Blink Outdoor 4: $100 We can all use a little more piece of mind, and at over 60% off, this three-pack of outdoor security cameras is a great investment. The cameras offer 1080p HD video, two-way talk and have a battery life of up to two years. Details Save $160 $100 at Amazon Close Amazon Echo Spot: $45 Amazon's Echo Spot smart speaker is down to $45 right now, matching its lowest price -- one we last saw during 2024's holiday sales. Now is a great time to grab this combination speaker and alarm clock, which is compact enough for a nightstand or office desk. You can choose from black, glacier white or ocean blue. Details Save $35 $45 at Amazon Close Echo Show 8: $110 Amazon's Echo Show 8 is one of our absolute favorite smart displays for 2025 and it's now down to just $110. That's a solid $40 discount and makes it easier to grab this convenient Alexa gadget for your smart home. The Echo Show 8 makes for a great control center if you're grabbing multiple Amazon devices. Details Save $40 $110 at Amazon Close Ring Alarm 14-piece smart home security system: $199 Want a DIY security system? This kit can keep you alert if you have a 2-4 bedroom home. It includes one base station, two keypads, eight contact sensors, two motion detectors and one range extender. You can also add sensors and accessories as needed, but those are sold separately. Additionally, you can subscribe to Ring Home Standard (for a separate fee) to keep your system online even if the Wi-Fi goes down and even add professional monitoring. Details Save $131 $199 at Amazon Close Refurbished Fire Max 11 tablet: $130 The Fire Max 11 is a great budget tablet with a beautiful 11-inch screen, perfect for streaming, reading and chilling out. This model has been refurbished up to Amazon Certified levels, so it's trustworthy but might not be for everyone. Details Save $70 $130 at Amazon Close More Prime Day offers on Amazon devices and accessories: Do I have to be an Amazon Prime member to shop Prime Day? To access most Prime Day deals, you'll need to be a Prime member. If you've always wanted the benefits of Prime but haven't made the jump, now's a great time to subscribe. Subscribing now could lead to significant savings as tariffs are expected to raise prices on a lot of goods. In fact, 16% of shoppers say they're using Prime Day to start their holiday shopping well ahead of the holiday season, according to a new RetailMeNot survey. (Disclosure: RetailMeNot is owned by the same parent company as CNET, Ziff Davis.) Read more: How to Sign Up for a Prime Membership Is Amazon Prime Day a good time to buy Echo, Kindle and Fire TV devices? Yes. Amazon withholds its biggest price cuts for its Prime events and offers them exclusively to its Prime members. During previous events, we've seen record-low pricing on everything from Echo smart speakers and Fire tablets to Fire TV Sticks, Ring and Blink security devices, Kindle e-readers and more. How we choose deals CNET has a team of shopping experts and deal hunters who've operated across major sales events for many years, making sure you understand when a deal is worth taking advantage of and when it's worth skipping. Whether it's for Black Friday, Prime Day or the Fourth of July, we have the expertise to make sure you get the best deal possible. To do this, we look for real discounts, quality reviews and remaining sale time when choosing an offer to show you. Real discounts mean real discounts. We look at the price history for that product to make sure no manufacturers are inflating prices to make the discount seem more substantial than it is. Quality reviews are equally important for any product, but particularly for deeply discounted items. If it breaks the first time you use it, the discount isn't really worthwhile. Remaining sale time is a huge part of our vetting process. If a deal seems like it will only be around for a short while or will only be available for the remaining stock, we'll let you know in advance, so you don't return later only to be disappointed. We are also considering the rising costs associated with tariffs to help you find items worth buying now. Read more: Tariff Tracker: We're Watching Prices for 11 Products You Might Need to Buy Watch this: How to Hack Amazon Prime Day: Shopping and Deals Advice 04:03
The Hill
11 minutes ago
- The Hill
Israeli strikes kill 15 in Gaza, while shootings kill 20 people waiting for aid
DEIR al-BALAH, Gaza Strip (AP) — Israeli airstrikes killed 15 Palestinians in Gaza early on Friday, while another 20 people died in shootings while waiting for aid, the hospital morgue that received their bodies told The Associated Press. At least 15 people were killed in Israeli airstrikes, including eight women and one child. Another 20 were shot while waiting for aid, according to Nasser Hospital, including two who were killed near distribution sites in Rafah and 18 who were waiting for trucks to deliver supplies elsewhere in southern Gaza. The recent killings took place as efforts to halt the 21-month war appeared to be moving forward. Hamas said Friday that it was holding discussions with leaders of other Palestinian factions to discuss a ceasefire proposal presented to it by Egyptian and Qatari mediators. Trump said Tuesday that Israel had agreed on terms for a 60-day ceasefire in Gaza and urged Hamas to accept the deal before conditions worsen. Hamas will give its final response to mediators after the discussions have concluded, the statement said. The Health Ministry in Gaza said the number of Palestinians killed in the territory has passed 57,000. The ministry does not differentiate between civilians and combatants in its count, but says more than half of the dead are women and children. The war began when Hamas-led militants attacked southern Israel, killing 1,200 people and taking roughly 250 hostages. According to Palestinian witnesses and Gaza's Health Ministry, several hundred people have been killed or wounded by Israeli troops when trying to reach the aid sites since they opened in May. The military has repeatedly said it's fired only warning shots, denies deliberately firing towards civilians, and says it's looking into reports of civilian harm. ___ Kullab reported from Jerusalem.
Bloomberg
11 minutes ago
- Bloomberg
China Adviser Says Time ‘Running Out' to Set Up Xi-Trump Meeting
The US and China need to pick up the pace of preparations if a leaders' summit is to take place in the fall, according to an adviser to the Foreign Ministry in Beijing, drawing attention to the tight timeline facing the two countries in pursuing better ties. 'If we are going to make this happen, we need to make preparations as soon as possible, and time is running out,' Wu Xinbo, director at Fudan University's Center for American Studies in Shanghai, said on Friday.
