Rivian reported a 13% rise in revenue to $1.3 billion and a net loss narrowing to $1.1 billion, reaffirming its delivery guidance of 40,000 to 46,000 vehicles. However, the company expects a full-year adjusted EBITDA loss of $2 billion to $2.25 billion, worse than previous forecasts. The removal of regulatory credits due to changes in emission standards and tariffs is set to impact revenue, with a drop from $300 million to $160 million expected by 2025. The removal of the $7,500 federal EV tax credit is also a significant blow to Rivian’s prospects for growth and profitability.

The impact of tariffs and trade regulation, removal of the federal tax credit, and lost revenue from regulatory credits pose challenges for Rivian. Despite these setbacks, the company’s future success hinges on the introduction of new EV models. The removal of the tax credit has led to a surge in demand followed by an anticipated lull, putting pressure on the company to meet delivery targets in the second half of the year. Rivian remains high risk, high reward, with recovery potential dependent on the success of new vehicle models.

Read more at Yahoo Finance: Rivian Faces a Dreaded Triple Whammy. Can the Stock Recover?