TLDR

Table of Contents

Rivian delivered 8,640 vehicles in Q1 2025, down 36% year-over-year
Production reached 14,611 vehicles, exceeding deliveries as the company builds inventory
Q1 sales decline was expected due to “seasonality” and impact of Los Angeles wildfires
Despite Q1 drop, Rivian reaffirmed its 2025 delivery guidance of 46,000-51,000 vehicles
The company is preparing for its R2 compact crossover launch in 2026, priced around $45,000

Rivian, the California-based electric vehicle maker, reported a sharp decline in first-quarter deliveries on Wednesday, though the numbers landed within the company’s own expectations. The EV startup delivered 8,640 vehicles during the first three months of 2025, representing a 36% drop compared to the same period last year and a 40% decrease from the previous quarter.

The company had prepared investors for the decline. During its February earnings call, Rivian executives warned that Q1 vehicle sales would drop to around 8,000 units.

They cited “seasonality coupled with a challenging demand environment” as primary factors. The impact of wildfires in Los Angeles, historically one of Rivian’s strongest markets, also contributed to the slowdown.

Production Outpaces Deliveries

While deliveries fell, Rivian’s production remained strong. The company manufactured 14,611 vehicles at its Normal, Illinois factory during the first quarter.

This production-delivery gap was intentional. Rivian is building inventory to “help mitigate the impacts of our planned shutdown in the second half of the year,” according to previous company statements.

The strategy also aims to enable higher commercial deliveries in the second quarter. Rivian currently sells the R1S SUV, R1T pickup, and a commercial van that recently became available to all businesses after an exclusivity deal with Amazon ended.

Wall Street had expected slightly higher deliveries. Analyst consensus predicted around 8,930 units for the quarter, according to FactSet, though this estimate was based on just four analysts.

Maintaining Annual Targets

Despite the Q1 decline, Rivian isn’t adjusting its annual outlook. The company reaffirmed its 2025 delivery guidance of 46,000-51,000 vehicles.

This projection would represent flat to negative growth compared to 2024, when Rivian delivered 51,579 vehicles. It suggests the company isn’t expecting a dramatic turnaround in the coming quarters.

The stock market reacted negatively to the news. Rivian shares fell nearly 6% on Wednesday, closing at $12.49 and slipping below the 200-day moving average.

The Q1 report raises questions about demand for Rivian’s current lineup. The relatively expensive R1 vehicles appear to be hitting a ceiling in terms of market penetration.

Rivian has made progress on the financial front. In its Q4 earnings report in February, the company announced it had achieved positive gross profit per vehicle, a key milestone for the startup.

The EV maker also reported removing $31,000 in cost per vehicle, showing significant efficiency improvements. For 2025, Rivian expects an adjusted loss of $1.7 billion to $1.9 billion, narrowing from a loss of $2.69 billion in 2024.

Looking Ahead to R2

Rivian’s long-term strategy hinges on its upcoming R2 model. The compact crossover, scheduled for launch in the first half of 2026, will be priced around $45,000.

This positions it to compete directly with mainstream vehicles like the Toyota RAV4 and Tesla Model Y. CEO RJ Scaringe emphasized that the company’s “focus on cost efficiency across the business is critical for the launch of our mass-market product, R2.”

The R2 represents Rivian’s bid to expand beyond its current niche and reach a much broader customer base. The more affordable price point could help Rivian achieve the volume needed for long-term sustainability.

In other corporate developments, Rivian recently spun off its “micromobility business” into a separate entity called Also. This new company secured a $105 million investment from venture capital fund Eclipse Ventures.

The EV sector overall is experiencing mixed trends. According to Cox Automotive, U.S. electric vehicle sales will likely decline quarter-over-quarter but should still show year-over-year growth when all Q1 numbers are tallied.

For Rivian, 2025 appears to be a transitional year as it prepares for what it hopes will be a transformative 2026 with the R2 launch.

The current delivery numbers suggest Rivian faces challenges in expanding sales of its existing models. But the company’s production ramp-up indicates confidence in its ability to meet future demand.

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