From Yahoo Finance: 2025-05-10 14:32:00

Rivian is a top U.S.-based electric vehicle company, achieving high owner satisfaction and gross profitability. However, tariffs are impacting its production and costs, leading to a lower delivery guidance of 40,000 to 46,000 vehicles for the year. Tariffs are expected to increase expenses by a few thousand dollars per vehicle.

The current global economic landscape, including tariffs, is causing concern. The U.S. economy contracted in the first quarter, with fears of a recession looming. Company CFOs cite tariffs as hindering decision-making, with 60% expecting a recession by year-end. An economic slowdown could hurt Rivian’s sales and profitability.

Despite the challenges, Rivian remains optimistic with new, more affordable vehicle models on the horizon. Economic uncertainty and tariffs may delay the company’s success, but long-term potential remains. Investors considering Rivian should be aware of the risks and longer timeframe for growth.

The Motley Fool’s Stock Advisor team did not include Rivian in their top 10 stock picks. Their picks have historically outperformed the market, offering substantial returns. Potential investors should weigh the risks and benefits before buying Rivian stock.

Read more: Is Rivian Stock a buy Amid President Trump’s Tariffs?