Driving the news: Rivian's $RIVN ( ▼ 0.23% ) deliveries dropped 22.7% in Q2 as the EV startup gets hit by rising costs.
For context: The company delivered 10,661 vehicles compared to last year's quarter, while production fell way short at just 5,979 units versus analyst expectations of 11,330. Rivian's gearing up for refreshed 2026 models of its pickup and SUV, which slowed current production.
Why it matters: Trump's tariffs are forcing expensive supply chain changes while buyers are gravitating toward cheaper hybrids instead of pricey EVs. Rivian had been exploiting the "leasing loophole" to offer customers $7,500 in tax savings, but that program ends in September, making Rivian's vehicles even costlier.
What we're watching: Rivian needs to boost margins before launching its more affordable R2 SUV next year, but losing the tax credit advantage will make that much harder. However, the company is sticking with its annual delivery forecast of 40,000-46,000 vehicles, and secured its next round of funding from VW.
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