Rivian Automotive saw a 32% increase in third-quarter deliveries, surpassing expectations as customers rushed to secure expiring tax credits for electric vehicles. However, the EV industry faces uncertainty after Congress eliminated tax credits on leasing, potentially impacting sales. The company delivered 13,201 vehicles, slightly above analysts’ estimates.

Rivian revised its annual delivery forecast to 41,500-43,500 vehicles, slightly lower than the previous range. Shares fell 2% in premarket trading. Tariffs on auto parts have raised manufacturing costs, squeezing margins for EV makers. Companies are reorganizing supply chains to reduce foreign dependency and comply with U.S. policy.

The removal of tax credits and tariffs on auto parts has caused challenges for electric vehicle manufacturers like Rivian. The rise in vehicle costs could impact the company’s margins as it prepares to launch more affordable R2 SUVs next year. Rivian aims to maintain profitability amidst changing market conditions.

Read more at Yahoo Finance: Rivian tops quarterly delivery estimates as sales jump before tax credit expiry