The stock of Rivian Automotive (RIVN) is down 4% after the electric vehicle maker reported a bigger-than-expected quarterly loss for this year’s second quarter.
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The company reported a loss per share of $0.80, which was worse than analysts’ average estimate of $0.65. Revenue in the second quarter totaled $1.30 billion, which was slightly better than analysts’ average estimate of $1.28 billion.
Management blamed the loss on disruptions in supplies of rare earth metals that are used to make parts for electric vehicles, which raised the company’s costs. China’s curbs on the export of rare earth metals that are essential components for today’s vehicles sharply increased Rivian’s material costs and disrupted its supply chains, driving up the cost of EV production in the U.S.
Rivian’s income statement. Source: Main Street Data
Difficult Guidance
Rivian also guided for a bigger full-year loss, saying it expects a loss between $2 billion and $2.25 billion, compared with $1.70 billion to $1.90 billion previously. The company largely blamed a tapering in the value of U.S. regulatory credits for its higher loss forecast.
Management said that Rivian Automotive delivered 10,661 electric vehicles in this year’s second quarter, a 22% decline from the same period in 2024. Earlier this year, the company slashed its 2025 delivery forecast to between 40,000 and 46,000 vehicles from an initial estimate of 46,000 to 51,000, citing U.S. tariffs as dampening consumer demand.
Rivian had cash on hand of $4.81 billion at the end of June. RIVN stock has declined 9% this year.
Is RIVN Stock a Buy?
The stock of Rivian Automotive has a consensus Hold rating among 25 Wall Street analysts. That rating is based on seven Buy, 15 Hold, and three Sell recommendations issued in the last three months. The average RIVN price target of $14.92 implies 23.36% upside from current levels. These ratings are likely to change after the company’s financial results.
