Rivian has hit a milestone in its settlement with German automotive large Volkswagen that may carry $1 billion into the EV startup’s coffers within the type of a share sale. Rivian additionally introduced Wednesday that it delivered 10,661 automobiles 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 on account of President Trump’s tariffs and commerce wars, all of which make it costlier to construct automobiles.
Rivian stated Wednesday that it nonetheless believes it can ship between 40,000 and 46,000 EVs this 12 months. However even hitting the excessive finish of that vary means it can finally promote fewer automobiles 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 way of billions of {dollars} and is banking a whole lot of the 2026 launch of its extra inexpensive 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 notice.
Rivian was solely capable of hit that gross revenue milestone as a result of it spent some huge cash and energy over the past two years simplifying the design of its current shopper automobiles, 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 remains 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 Stunning 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 can 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.
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