Rivian's financial woes deepen, leading to grim profit forecast
Rivian just lowered its profit forecast for this year, now aiming to simply break even instead of making a small gain.
Blame it on new US tariffs that are bumping up vehicle costs and policy changes that slashed the company's regulatory credit revenue.
What stings more: their $206 million Q1 gross profit flipped to a loss in Q2.
Adjusted EBITDA loss expected to be between $2 and $2.25 billion
Thanks to recent rule changes, Rivian's expected credit revenue for the year dropped from $300 million to about $160 million.
Tariffs will add thousands more per vehicle in the second half of this year, so the company now expects an even bigger adjusted EBITDA loss—somewhere between $2 and $2.25 billion.
Rivian's shares fell 5% after these updates
Volkswagen's $1 billion investment (part of a larger partnership) is now extra important for Rivian as they try to scale up and cut costs.
Still, investors weren't thrilled—Rivian's shares fell 5% after these updates.