Rivian has hit a milestone in its settlement with German automotive large Volkswagen that may deliver $1 billion into the EV startup’s coffers within the type of a share sale. Rivian additionally announced Wednesday that it delivered 10,661 autos within the second quarter.
That represents a 23% drop in gross sales from the second quarter of 2024, and solely a slight enchancment over Rivian’s tough first quarter, when it delivered 8,640 EVs. The corporate already lowered its gross sales goal for 2025 because of President Trump’s tariffs and commerce wars, all of which make it dearer to construct vehicles.
Rivian mentioned Wednesday that it nonetheless believes it is going to ship between 40,000 and 46,000 EVs this 12 months. However even hitting the excessive finish of that vary means it is going to finally promote fewer vehicles in 2025 than it did in both of the prior two years. All this makes issues particularly tenuous for Rivian, which has traditionally burned by means of billions of {dollars} and is banking a number of the 2026 launch of its extra reasonably priced SUV, the R2.
The payout from Volkswagen is the results of Rivian tallying its second-ever gross revenue within the first quarter of this 12 months. In 2024, the 2 automakers introduced a expertise three way partnership value as much as $5.8 billion. Rivian’s offered staff, together with its software program and electrical structure designs, to that three way partnership. Volkswagen plans to make use of these underlying applied sciences to energy its future EVs. It offered the primary $1 billion to Rivian late final 12 months within the type of a convertible be aware.
Rivian was solely in a position to hit that gross revenue milestone as a result of it spent some huge cash and energy during the last two years simplifying the design of its present client autos, the R1S SUV and R1T pickup truck. These redesigned variations hit the street final 12 months and had been dramatically cheaper for Rivian to construct, though the corporate continues to be shedding cash total.
Issues might get much more difficult for corporations like Rivian if Trump will get what he desires together with his so-called proposed “One Large Lovely Invoice.” This week, that piece of laws was handed from the U.S. Senate again to the Home of Representatives. In its present kind it is going to finish the federal EV tax credit score, which immediately cuts $7,500 off the worth of a brand new electrical car, in September of this 12 months.