Rivian, Lucid Brace for a Rough Ride as EV Headwinds Intensify

Rivian (RIVN, Financials) and Lucid Group (LCID, Financials) are warning that the rest of 2025 will be bumpy; policy changes, trade tensions and supply?chain snags are putting pressure on electric?vehicle makers. Rivian shares slid about 4% after hours; Lucid fell roughly 7%.

The Trump administration has reshaped the EV landscape ending consumer tax credits; imposing steep tariffs on imported auto parts; and scrapping emission fines for gas?vehicle makers. China's tighter export limits on heavy rare earth metals critical for EV motors have only made things worse; supply chains are straining under the weight.

For Rivian, that's meant higher costs and shrinking side income from selling regulatory credits. The company now expects a deeper adjusted core loss of $2 billion to $2.25 billion this year; that's up from its prior $1.7 billion to $1.9 billion range. Per?unit costs jumped 8% to about $118,375; lower production added roughly $14,000 per vehicle. A three?week production pause in September will prepare its lower?priced R2 SUV for a 2026 launch; management says the model is key to reaching a wider audience.

Lucid avoided the worst of the rare?earth crunch by tapping into existing magnet inventory; still, tariffs have eaten into margins. The luxury EV maker cut its annual production goal; it also warned of softer demand in Q4 once the $7,500 federal tax credit expires at the end of September. Analysts expect a rush of Q3 sales as buyers race to lock in the incentive; the risk is that the pull?forward leaves a hole later in the year.