Rivian Automotive, Inc. RIVN manufactured 14,611 vehicles in the first quarter of 2025 at its Normal, IL, plant, up from 13,980 units produced in the corresponding quarter of 2024. However, its deliveries dropped to 8,640 vehicles from 13,588 in the same period last year. The reported production and delivery figures align with Rivian's forecast of producing about 14,000 vehicles and delivering around 8,000. It delivered 51,579 vehicles in 2024.

Per Claire McDonough, CFO of Rivian, the deliveries are expected to decline in 2025 amid weaker demand that is partly influenced by fires in Los Angeles. Like other EV makers, Rivian is struggling with sluggish demand as consumers lean toward more affordable hybrid and gas-powered vehicles amid economic and political uncertainty.

Potential tariff policies from former U.S. President Donald Trump could drive up inflation and car prices, which may discourage major purchases. Per Reuters, tariffs on Mexico and Canada could increase costs, given the company’s reliance on suppliers from both countries.

The company reaffirmed its 2025 delivery target of 46,000 to 51,000 vehicles, suggesting flat or declining deliveries for a second consecutive year, as demand for its premium R1 models appears to be stagnant. However, 2026 could mark a turning point with the launch of the R2, a compact crossover priced around $45,000, set to compete with top-selling models like the Toyota RAV4 and Tesla Model Y.

Per Cox Automotive, industry-wide EV sales in the United States are expected to decline quarter over quarter but should show year-over-year growth.

RIVN’s Zacks Rank & Key Picks

Rivian carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the auto space are China Yuchai International Limited CYD, Suzuki Motor Corporation SZKMY and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 60 days. 

The Zacks Consensus Estimate for SZKMY’s 2025 sales and earnings implies year-over-year growth of 8.59% and 48.43%, respectively. EPS estimates for 2025 and 2026 have improved 56 cents and 39 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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