By Dean Seal

Shares of Rivian Automotive slipped after the company said it expects to deliver fewer vehicles in 2025 than it did last year against an uncertain backdrop for EV demand.

The stock was down 3.8% at $13.09 in early trading. Shares are now in negative territory year-to-date.

The electric-vehicle maker said after Thursday's closing bell that it projects 46,000 to 51,000 deliveries this year, down from nearly 52,000 in 2024 and beneath the 55,000 that analysts polled by FactSet had expected.

That includes the delivery of 8,000 units in the first quarter, which is below Wall Street targets as the company deals with seasonality and a challenging demand environment, Stifel analysts said in a research note.

Rivian also is facing some near-term uncertainty from a regulatory perspective, particularly when it comes to tariff exposure, that is clouding demand for the year and could lead to higher prices, Benchmark analysts said.

The full-year outlook is relatively conservative as Rivian fights several macroeconomic headwinds, ramps up production and tries to remain prudent about spending on things that can bolster its profitability, Wedbush analysts said in a research note.

Part of the expected deliveries decline is coming from Rivian's planned plant shutdown in the second half of the year, during which it will retool production to support the R2 model that Rivian intends to launch next year, the Wedbush analysts said. The new model is expected to reduce company costs and appeal to a larger market of consumers, they said.

The challenging macroeconomic backdrop is spooking traders more than analysts. Stifel, Wedbush and Benchmark analysts all maintain a buy rating on the stock. They say the company's fourth-quarter performance shows it making steady progress on profitability and that the long-term prospects of the company are strong.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 21, 2025 11:27 ET (16:27 GMT)

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