Electric vehicle maker Rivian has revised its delivery targets for 2025, citing the impact of newly imposed U.S. tariffs on imported vehicles and parts. The company has lowered its expected deliveries to between 40,000 and 46,000 vehicles, down from the previous prediction of 46,000 to 51,000 units. Reuters reported that the tariffs are likely to increase the cost per vehicle by several thousand dollars.

To counteract the financial impact of these tariffs, Rivian has increased its capital expenditure forecast for the year. The company plans to spend between $1.8 billion and $1.9 billion, an increase from an earlier estimate of $1.6 billion to $1.7 billion. Additionally, Rivian announced plans to invest $120 million in constructing a supplier park near its factory in Normal, Illinois, to streamline its production process and cut costs associated with tariff-affected supply chains.

As part of its strategy to adjust to these challenges, Rivian is pausing production temporarily to prepare for the launch of its more affordable R2 SUV, slated for early 2026. Despite the difficulties, the company reported a positive revenue of $1.24 billion in the first quarter, even as deliveries fell by 36% year-over-year. This decline reflects broader economic uncertainties and a stronger consumer preference for hybrids.