(Reuters) -Rivian Automotive lowered the midpoint of its annual deliveries forecast range on Thursday as the EV-maker braces for an uncertain few quarters due to the lapse of federal tax credits, sending its shares down more than 7% in early trading.
Despite reporting a nearly 32% jump in deliveries, Rivian and the electric-vehicle industry face a cloudy outlook after the U.S. Congress, through sweeping legislation, moved to abolish a $7,500 tax credit on leasing that EV makers had long relied on to bolster sales.
The tax credit expired on Tuesday. Analysts and experts had predicted that EV sales and leasing would plummet after it ended, but that a rush to purchase EVs from buyers looking to beat the deadline would precede the fall.
Rivian narrowed its annual forecast for deliveries to between 41,500 and 43,500 vehicles, the midpoint of which is 500 vehicles lower than its previous forecast of between 40,000 and 46,000 cars.
The company delivered 13,201 vehicles in the third quarter, compared with an estimate of 12,690 vehicles, according to analysts polled by Visible Alpha.
Along with the removal of consumer tax credits, the imposition of high tariffs on imports of auto parts has hit makers of electric vehicles by pushing up manufacturing costs and compressing margins.
The duties left carmakers scrambling to reorganize supply chains, reduce foreign dependency and increase investment in the U.S. – a policy emphasized by the Trump administration.
The rise in vehicle costs could cause Rivian’s margins to take a hit when the company has been looking to boost profitability ahead of the rollout of its more affordable R2 SUVs next year.
Rivian is expected to release its third-quarter financial results on November 4, after markets close.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Pooja Desai)
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