Folks take a look at Rivian electrical vehicles on the auto maker’s newly opened storefront within the Meatpacking District of Manhattan on June 23, 2023 in New York Metropolis.
Spencer Platt | Getty Pictures
Rivian reported a 36% decline in first-quarter deliveries on Wednesday, because the electric-vehicle maker grapples with weak demand, sending its shares down greater than 2% on the open.
The corporate delivered 8,640 autos within the quarter ended March 31, down from 13,588 a 12 months earlier. The deliveries, nevertheless, exceeded analysts’ common estimate of 8,200, in response to Seen Alpha.
The corporate’s chief monetary officer, Claire McDonough, had mentioned in February car deliveries could be decrease this 12 months as a consequence of comfortable demand, partially due to the impression of fires in Los Angeles.
Rivian and different EV makers have been battling robust demand for his or her autos as customers go for cheaper hybrid and gas-powered fashions in an unsure financial and political atmosphere.
U.S. president Donald Trump’s tariff insurance policies might speed up inflation and improve costs of vehicles, additional making customers cautious of committing to huge purchases.
Rivian CEO RJ Scaringe instructed Reuters earlier this 12 months that the corporate expects increased prices from tariffs on Mexico and Canada because it has a provide chain footprint in each nations.
The corporate produced 14,611 autos within the first quarter, in contrast with 13,980 autos a 12 months in the past.
It reaffirmed its annual manufacturing forecast and expects to announce its quarterly monetary outcomes on Might 6, after markets shut.
Rivian is banking closely on the roll-out of its cheaper R2 subsequent 12 months to reinvigorate demand and compete with EV heavyweight Tesla’s Mannequin Y.
