Rivian Automotive Inc. (NASDAQ: RIVN) stock rallied when the Trump administration announced 25% tariffs on autos and auto parts imported by U.S. car companies. Estimates of how much this will raise new car prices range from $5,000 to $10,000.
24/7 Wall St. Key Points:
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Very few auto manufacturers will dodge the problems created by new tariffs.
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EV maker Rivian Automotive Inc. (NASDAQ: RIVN) may be one of them.
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Very few manufacturers will dodge the problem, Rivian, the deeply troubled electric vehicle (EV) company, may be one of these. Its stock rallied on the news. It is now down 3%, which is about the same as the S&P 500. Since it is down almost 90% in the past five years, the recent price movement could be called a “recovery.”
Rivian builds its cars in the United States. The tariff news is not the only catalyst for its share comeback, but it has to be the primary one. The company announced the spin-off of an operation that will make small vehicles, including electric bikes, scooters, and skateboards. The new company’s name is Micromobility. There is little demand for this type of vehicle, so the move does not help Rivian much.
Rivian’s Challenges
Even with the good news about tariffs, Rivian has a tall mountain to climb. Revenue for the final quarter of the calendar year rose from $1.32 billion to $1.73 billion. The EV maker showed a loss of $0.70 per share, compared to the loss of $1.58 in the same period of last year.
Additional bad news was that Rivian expects to deliver only 46,000 to 51,000 vehicles this year. Last year’s figure was 51,975. It could make a modest advance if its EV competition faces much higher prices because of tariffs
Up until now, Rivian’s trucks and SUVs are unusually expensive, which is probably part of why its unit sales are low. Its base R1S Dual Standard SUV costs $79,500. Higher-priced models cost over $100,000. The base price for its R1T Dual Standard pickup is $69,000. The high-end version is priced at $99,900.
Rivian has boxed itself into a business model with expensive products and corporate expenses that are too high. The new tariffs may be its only way out.
Rivian Price Prediction and Forecast 2025-2030
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