EV maker Rivian announced a net loss of $1.1 billion USD in the second quarter of this year. A figure like that proves once again how difficult it is for a startup to establish itself in the automotive market.
The path to profitability is not a smooth ride. It’s more a path riddled with pitfalls and challenges.
And actually, the figures announced for Q2 represent an improvement for Rivian - the net loss for the same period last year was $1.5 billion USD. The company's revenue increased by 13 percent compared to the previous year, reaching $1.3 billion USD.
On another glass-half-full note, Rivian's gross loss was $206 million USD in the second quarter, compared to $451 million USD a year earlier. Rivian even achieved its first gross profit in the fourth quarter of 2024, followed by another in the first quarter of 2025.
Steady as she goes
The brand maintains it is on track with its delivery goals for 2025, which are between 40,000 and 46,000 vehicles. The second half of the year will need to be strong for the company to reach that target; Rivian will need to sell around 21,000 vehicles from July to December. The catch is the U.S. government’s efforts to push back against EVs. It remains to be seen how that will affect Rivian.
During the presentation of the firm's second-quarter results, CEO RJ Scaringe acknowledged that Rivian is facing a more difficult business climate due to political changes made under the Trump administration, notably the increase in tariffs and the elimination of EV purchase incentives.
"The political environment remains complex and is evolving rapidly. Changes to electric vehicle tax credits, regulatory credits, trade regulations and tariffs are expected to impact our company's results and cash flow," he added.
Rivian CFO Claire McDonough said that tariffs did not have a significant impact on costs in the second quarter, but that they "are expected to have a net impact of a few thousand dollars per unit for the rest of 2025."
The automaker's stock price fell by about 5 percent in after-hours trading yesterday after the announcement.
One cause for optimism for the company is the coming launch of the R2 SUV, which will sell for less and should appeal to a larger segment of the population. Its debut is planned for next year.