The EV truck maker is trying to reduce costs ahead of a new vehicle launch in 2026
Rivian Automotive reported strong third-quarter 2025 results with 10,720 vehicles produced and 13,201 delivered, exceeding expectations despite challenging market conditions. Deliveries rose 32% year-over-year, mainly fueled by customers rushing to benefit from the expiring U.S. federal tax credits on electric vehicles. This represented an encouraging recovery from lower production earlier in the year, driven by supply chain disruptions and trade policy shifts. Rivian’s manufacturing facility in Normal, Illinois, continues to be the core production hub, although production volumes slightly lagged behind the same quarter in 2024.
The company narrowed its full-year 2025 delivery guidance to between 41,500 and 43,500 vehicles, tightening the range from an earlier estimate of 40,000 to 46,000. This adjustment signals cautious optimism amid ongoing hurdles including higher costs associated with tariffs and material supplies, and the impact of the tax credit expiration on demand. Although deliveries for 2025 are expected to be lower than 51,579 vehicles delivered in 2024, Rivian is managing this transition strategically.
Is it a chain to again lay off the employees ?
A brief production pause was implemented to recalibrate the Normal plant for the upcoming R2 model, a more affordable electric SUV planned for launch in 2026. The R2’s introduction, with a starting price around $45,000, aims to expand Rivian’s market reach and boost sales momentum next year. Alongside vehicle production, Rivian continues to invest heavily in software innovation and electric fleet services, reinforcing its long-term vision of accelerating zero-emission transportation.
Rivian delivered 13,201 vehicles in Q3 2025, exceeding expectations, but narrowed its full-year delivery forecast to 41,500–43,500 vehicles due to market challenges. The company paused production to prepare for its upcoming R2 SUV model and is expanding with a new facility in Georgia. Financially strong but still loss-making, Rivian faces high production costs and supply issues. Workforce cuts are underway to manage expenses amid declining EV incentives. The full Q3 financial report will be released on November 4, 2025, providing deeper insights into Rivian’s resilience and growth strategy in a competitive EV market.
In short, Rivian is laying off over 600 employees, about 4% of its workforce, to reduce costs amid a challenging EV market and to focus on the upcoming R2 SUV launch in 2026. This move aims to streamline operations and ensure the company’s long-term sustainability and growth.