Rivian Automotive, Inc. (RIVN) shares plummeted 5.85% during Wednesday's trading session, following the electric vehicle maker's announcement of reduced delivery guidance for 2025 due to the impact of tariffs and economic uncertainty.

In its first-quarter earnings report, Rivian lowered its full-year 2025 delivery forecast to between 40,000 and 46,000 vehicles, down from the previous range of 46,000 to 51,000. The company cited evolving trade regulations and tariff-related challenges as key factors behind the revision. CEO RJ Scaringe noted that new tariffs could increase production costs by "a couple of thousand" dollars per vehicle, putting pressure on consumer demand in an increasingly price-sensitive market.

Despite the delivery guidance cut, Rivian reported better-than-expected first-quarter results. The company achieved its second consecutive quarter of positive gross profit, reaching $206 million. Revenue rose to $1.24 billion, surpassing analysts' estimates of $1.02 billion. However, investors seemed more focused on the long-term implications of the tariff situation and its potential impact on Rivian's growth trajectory. The company also raised its capital spending guidance for the year to $1.8-$1.9 billion from $1.6-$1.7 billion, reflecting increased costs for factory expansion.