Rivian Automotive Inc. (NASDAQ:RIVN) remains committed to its $45,000 starting price for the upcoming R2 electric vehicle despite mounting concerns over global trade tensions and tariffs, CEO RJ Scaringe confirmed during the company’s first-quarter of 2025 earnings call.
What Happened: “We’re not planning changes in our $45,000 starting price. This is important for us,” Scaringe said, addressing investor concerns about the impact of recent tariffs on EV components. The company expects per-unit tariff impacts of approximately $2,000 for 2025.
Rivian reported better-than-expected first-quarter results with an Earnings Per Share of -$0.41. Revenue reached $1.24 billion, exceeding the street consensus estimate of $1 billion. The company achieved positive gross profit for the second consecutive quarter at $26 million.
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Why It Matters: Despite the strong financial performance, Rivian revised its 2025 delivery guidance downward to 40,000-46,000 vehicles, citing increased price sensitivity in the EV market and a challenging consumer backdrop.
The R2, scheduled for production in the first half of 2026, represents Rivian’s strategic move into a more affordable market segment. The company has begun validation builds of the R2 prototype and confirmed that its Normal, Illinois, facility expansion remains on schedule, with a planned production shutdown for approximately one month in the second half of 2025 for R2 integration.
CFO Claire McDonough emphasized that R2 will be “truly transformative for our growth and profitability,” noting that the company expects “a faster path to profitability as compared to R1.”
Price Action: Rivian stock closed at $13.50 on Tuesday, down 0.37% for the day, and fell another 1.56% in after-hours trading to $13.29. Year to date, the stock is up 1.89%.
According to Benzinga Stock Edge Rankings, Rivian shows stronger growth metrics than rivals Tesla Inc. (NASDAQ:TSLA) and Nio Inc. (NYSE:NIO), though it trails Lucid Group Inc. (NASDAQ:LCID). RIVN also exhibits a positive price trend from the short to long term. Sign up to learn more.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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