Rivian and Tesla Underperform as EV Market Faces Headwinds
Rivian Automotive delivered 42,247 electric vehicles in 2025, marking an 18% decline from the previous year and falling short of analyst expectations. The California-based automaker's fourth-quarter performance mirrored this trend, with 9,745 units delivered—just below Wall Street's forecast of 10,050. Production at its Illinois facility totaled 10,974 vehicles during the same period.
The broader EV sector faces significant challenges. The expiration of the $7,500 federal tax credit in September 2025 has dampened consumer demand, particularly for premium models like Rivian's R1T pickup and R1S SUV. Tesla similarly reported disappointing delivery numbers, compounding the industry's struggles.
Rivian has implemented cost-cutting measures at its Illinois plant, streamlining production and simplifying vehicle components. Yet the company must now prove its path to sustainable profitability to increasingly impatient investors.
