Rivian deliveries decline sharply as tariffs hit demand
reported a sharp fall in second-quarter deliveries on Wednesday, as demand for its
electric vehicles
takes a hit from stiff competition and tariff-driven economic uncertainty, sending its shares more than 2 per cent lower.
Trade tariffs imposed by U.S. President Donald Trump have led to a surge in manufacturing costs for the sector, with carmakers scrambling to reorganise supply chains to mitigate the hit to their businesses.
High interest rates are also holding back some buyers, while many are opting for cheaper hybrid- and gasoline-powered cars.
The rise in vehicle costs could put pressure on Rivian's margins at a time when the company has been looking to boost profits ahead of the roll-out of its more affordable R2 SUVs next year.
Rivian delivered 10,661 vehicles in the quarter ended June 30, a fall of 22.7 per cent from the same quarter last year, but in line with Visible Alpha estimates.
Sales prospects for EV makers are also under pressure from a bill released last week by U.S. Senate Republicans to end the $7,500 tax credit on new electric vehicle sales and leases on September 30.
Rivian's vehicles did not qualify for the tax credit but it was using a leasing loophole to take advantage of the incentive.
"Now with the tax credit going away, that loophole goes away as well. That is going to have a negative impact in the near term because it's going to result in cars being more expensive," said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
The company also produced fewer-than-expected vehicles as it gears up to launch its refreshed 2026 models of the R1T truck and R1S SUV.
Rivian made 5,979 units in the quarter, compared with estimates of 11,330 units, according to four analysts polled by Visible Alpha.
The company reiterated its annual deliveries forecast of between 40,000 to 46,000 vehicles and expects to announce its second-quarter financial results after markets close on August 5.
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