Tesla’s first-quarter dip may have raised eyebrows, but Rivian’s Q1 results are hitting a lot harder. The EV maker delivered just 8,640 vehicles in the first three months of 2025-a steep 36% drop from the 13,588 units delivered in Q1 2024, and well below Wall Street’s estimate of 9,000. This shortfall has intensified concerns about Rivian’s ability to maintain momentum in a challenging EV market.
Rivian’s production, however, tells a slightly different story: the company built 14,611 vehicles in Q1 2025, a modest increase from the 13,980 produced a year earlier. The gap between production and deliveries suggests Rivian is building inventory ahead of its anticipated R2 launch and a planned plant retooling later this year. Despite the delivery slump, Rivian reaffirmed its full-year guidance of 46,000 to 51,000 vehicles-lower than last year’s target but reflecting a cautious approach as the company prepares for major operational changes.
The broader EV sector is feeling the strain. Tesla, for example, reported a 13% year-over-year drop in Q1 deliveries (336,681 units), missing analyst expectations by a wide margin. Tesla’s revenue fell 9% to $19.3 billion, with operating income and margins also sharply down. The company attributed its weaker performance to a combination of demand issues, lower average selling prices, and production disruptions tied to the Model Y refresh.
For Rivian, the Q1 numbers highlight the mounting pressure to control costs, stimulate demand, and successfully pivot to its next-generation R2 platform. Investors will be watching closely as Rivian releases its full financial results and outlines its strategy for navigating a fiercely competitive and rapidly evolving EV landscape.
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