Rivian Automotive reported first-quarter vehicle deliveries that outpaced analyst expectations, suggesting demand for its sport utility vehicles and R1T pickup trucks is stabilizing following a downturn late last year tied to the end of a U.S. electric vehicle tax credit.
The Irvine, California-based automaker disclosed that it delivered 10,365 vehicles between January and March, topping Visible Alpha consensus estimates of 9,678. Rivian reiterated its full-year delivery guidance of 62,000 to 67,000 vehicles.
Company production for the March quarter also exceeded estimates. Rivian produced 10,236 vehicles during the quarter, compared with analyst forecasts of 9,852. Management described the volume improvements as positive momentum as the firm prepares to introduce a more affordable R2 SUV.
Rivian is planning to begin deliveries of the new R2 this spring, and the automaker anticipates that the model will broaden its addressable customer base. The cheapest R2 variant is expected to start at around $45,000, with a launch of that lower-priced configuration slated for next year. Rivian projects the R2 will compete with Tesla's Model Y Premium, which is listed at a starting price of $44,990.
The company also highlighted broader market factors that could influence EV demand. U.S. gasoline prices have risen sharply since the Iran war began in February, a development that analysts cited as potentially redirecting more buyers toward electric vehicles and benefiting producers such as Rivian and its larger rival Tesla.
Rivian's sales had weakened in the December quarter after a $7,500 U.S. federal EV tax credit expired in September, a development that raised effective prices for buyers and removed a longstanding incentive. The company and market observers framed that policy shift as a factor in the prior sales decline.
In addition to product plans, Rivian reached a long-term strategic agreement with ride-hailing company Uber last month. Under the arrangement, Uber will invest up to $1.25 billion in Rivian and plans to deploy Rivian's fully autonomous R2 SUVs as robotaxis beginning in 2028.
Rivian intends to publish its first-quarter financial results on April 30, after markets close.
The company and market participants continue to watch production and delivery trends closely as indicators of whether the recent stabilization in demand will persist through the full year.