Together with Rivian Automotive Inc., which this month raised its delivery projections for 2025, they forecast a steep decline in electric vehicle (EV) deliveries due to ongoing headwinds across the auto industry. The company has since revised its expectations downward, now expecting to deliver between 40,000 and 46,000 vehicles. This is a reduction from its previous projection of 46,000 to 51,000 vehicles. This change comes after a historic $1.7 billion net income deficit. The rideshare giant announced a net loss of $541 million for Q1 2025.
Yet in the first quarter of 2024, Rivian’s automotive revenue fell to just $922 million. That’s down from $1.12 billion in the same time last year. Here, total revenues were actually up just a bit from this time last year. That growth came from a big increase in sales of software and services, which jumped to $318 million—almost four times the $88 million reported in the same quarter in 2024.
The big jump in software and services revenue is due to a combination of factors. Rivian’s vehicle electrical architecture and development service Rivian has significantly revamped its vehicle electrical architecture and software development service. They saw increases in remarketing sales and repair/maintenance service sales. These changes have helped Rivian unlock $206 million of gross profit on 8,640 deliveries over the first quarter.
Though that’s excellent news in terms of software sales, Rivian is not out of the woods. The company’s previous delivery figures indicate a concerning trend of stagnation. It delivered 51,579 vehicles in 2024 and 50,122 in 2023. Failing to deliver at least 46,000 EVs would be a disaster for Rivian. The company is now looking toward its third straight year of zero volume growth.
In recent months, Rivian’s already lofty capital expenditure plans have been raised. They recently revised that their forecast down to $1.8-$1.9 billion taking into account the expected impacts of tariffs and continued trade uncertainty. This is up from its previous capex guidance of $1.6 billion to $1.7 billion.
In a cautionary statement earlier this year, Rivian warned investors about the potential impact of “changes to government policies and regulations, and a challenging demand environment” on vehicle demand. As the EV market continues to evolve amidst regulatory changes and economic uncertainty, Rivian’s ability to adapt will be crucial for its success.
The company is largely banking on its first production outside of China — the R2, an affordable SUV slated for release next fall. This model is primed to increase their deliveries once it goes on sale in 2026. The setbacks are certainly a blow to short-term growth potential as Rivian treks through this rough terrain.