Electric vehicle (EV) maker Rivian reported a 36% decline in first-quarter deliveries, highlighting ongoing challenges in the EV market, CNBC reports.
The company delivered 8,640 vehicles in the quarter ending March 31, down from 13,588 in the same period last year. Despite the drop, deliveries slightly exceeded analysts’ expectations of 8,200, according to Visible Alpha.
Rivian’s Chief Financial Officer, Claire McDonough, had warned in February that deliveries would be lower in 2024 due to weakened demand, with additional disruption caused by fires in Los Angeles. The broader EV industry has faced headwinds as consumers increasingly opt for more affordable hybrid and gasoline-powered vehicles, citing economic uncertainty.
Trade policies may also contribute to future cost pressures. Rivian CEO RJ Scaringe previously noted that potential tariffs on Mexico and Canada—where Rivian has supply chain operations—could increase manufacturing costs. Additionally, former US President Donald Trump’s trade policies, if reinstated, could impact inflation and vehicle pricing, making big-ticket purchases less attractive to consumers.
Despite the drop in deliveries, Rivian reported an increase in vehicle production, manufacturing 14,611 units in the first quarter, up from 13,980 a year ago. The company reaffirmed its annual production forecast and is set to release its quarterly financial results on May 6.
Looking ahead, Rivian is betting on the launch of its more affordable R2 model next year to boost demand and compete more directly with Tesla’s popular Model Y.
Following the delivery report, Rivian’s shares opened more than 2% lower on Wednesday.
