Rivian stock falls on tariff hits and tax credit rollback fears

Rivian slowed its production last quarter as electric vehicle companies face lower consumer demand amid tariffs and fiscal changes in Washington. 

The Irvine, California company on Wednesday announced its second quarter production and delivery totals. Rivian produced 5,979 vehicles and delivered 10,661 vehicles — a 22.7% decline from the same quarter last year. Shares are down 3.5%, Reuters reported. 

The company stated in a press release that it limited production in preparation for its launch of 2026 models later this month. It expects to deliver a total of 40,000 to 46,000 vehicles in 2025.

President Trump’s trade tariffs have led to a surge in costs for car manufacturers. Imported cars and auto parts are subject to a 25% tariff. Carmakers can apply for reduced tariffs if their vehicles are assembled in the U.S. Analysts expect manufacturers to pass this cost to consumers. Wedbush Securities Inc. analyst Daniel Ives estimated that the average cost of a car could rise between $5,000 to $15,000, Bloomberg reported. 

Buyers are also facing higher interest rates and economic uncertainty, further stifling demand for electric vehicles, which are more expensive than gasoline-powered cars.  

Last week, U.S. Senate Republicans released a revised tax and budget bill that would end a $7,500 tax credit on new EV sales and $4,000 tax credit for used EV sales. If passed, the bill would take effect in September and is expected to put additional pressure on EV manufacturers. 

Rivian will release its second quarter financial results on August 5, after market close. It's stock is down 0.6% this year.