Rivian Automotive is cutting 4.5 percent of its workforce — representing over 600 employees — as the electric vehicle (EV) maker faces weakening demand following the expiration of a key U.S. federal tax credit.
The $7,500 federal tax credit for new EV purchases and leases expired last month, leading to higher consumer prices and a slowdown in sales across the EV sector. Rivian, known for its R1T pickup and R1S SUV, is among several automakers adjusting operations to align with reduced incentives and softening consumer sentiment, Reuters reports.
Despite the headwinds, Rivian reported stable operational performance in the third quarter of 2025. The company produced 10,720 vehicles at its Normal, Illinois plant and delivered 13,201 vehicles, consistent with its production outlook. Rivian has also narrowed its 2025 delivery guidance to between 41,500 and 43,500 vehicles, signaling confidence in its production capabilities amid challenging market dynamics.
The EV maker plans to announce its Q3 2025 financial results on November 4, 2025, after market close. Investors will be closely watching for updates on Rivian’s cost management strategy, margin outlook, and response to the evolving U.S. EV policy landscape. With major automakers scaling back electric vehicle targets and incentives in flux, Rivian’s restructuring underscores the growing pressure on EV companies to balance affordability, efficiency, and long-term profitability in a cooling market.