Rivian CEO RJ Scaringe Says Donald Trump's Tariffs Could Increase Costs By 'A Couple Of Thousand,' Slashes Delivery Projections

Rivian Automotive Inc. RIVN CEO and Founder RJ Scaringe warned of potential negative impacts of U.S. President Donald Trump's 25% auto tariffs as company shares fell 1.4% following the earnings call.

What Happened: "Customers are hesitant to make large-dollar purchases, and they’re more price sensitive than they historically have been," Scaringe told Reuters on Wednesday. He also expects the tariffs to raise the cost per vehicle by "a couple of thousand" dollars.

The EV maker revised its projections for deliveries in 2025 as Rivian slashed down expected deliveries to 40,000 – 46,000 units this year.

Why It Matters: Rivian announced better-than-expected quarterly results at the Q1 2025 earnings call with investors. The company reported first-quarter revenue of $1.24 billion, which is a 3% YoY increase.

The EV maker also expects to hold firm on the $45,000 price of its upcoming affordable SUV, the Rivian R2, despite tariff uncertainties. Rivian recently announced plans to invest over $120 million to build a supplier park at its Normal, Illinois, manufacturing facility.

Interestingly, Scaringe recently shared in an interview that the company's U.S.-centric supply chain could give it an edge over its competitors amid Donald Trump's auto tariffs.

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