A Little Good News for Rivian Investors

0 3 minutes read

In the last shift of events, the Trump administration gave some comfort on the definitions.
Rivian has started storing battery components before the age of definitions.
EV manufacturer hopes that the next launch of his R2 model will help increase sales.

Unless you see the news intentionally, you have certainly heard about the Trump administration tariff. While Trump used the customs tariff as bargaining and influencing foreign policy, the auto industry was concerned that it might witness high prices, reduce sales, and less profit.

to Rivian cars (Nasdaq: rivn) Investors, there is little good news on the customs tariff front and with one strategy used to compensate for some winds of the tariff.

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Photo source: Review.

The first part of the good news of Rivian investors is the identification relief of the Trump administration. Currently, there is a 25 % tariff on imported vehicles, 25 % tariffs on the vehicle parts that started on May 3.

Two executive requests are expected to provide some comfort for the auto industry. Essentially, for a car with 50 % parts of imported parts, the auto company must pay a tariff on 35 % of the car for the first year. Then the discount is reduced in the second year and then the gradual disposal. This means that the car with 85 % of local parts will avoid tariffs during the first year – it should be noted that 85 % is a high percentage of local parts.

A separate executive order indicated that car manufacturers will only pay a tariff of up to 25 % on a vehicle and its parts, and you will not have to pay additional import taxes on aluminum and steel used in the car, or because of its import from Canada or Mexico.

While comfortably welcomes, not everyone thinks it is very useful. One of these people is Dan Eve, the administrative director of Autos at Wedbush Securities, according to Free Detroit Press.

In a strategic step, Rivian started quietly building a group of ECA batteries from Asia before the Trump administration tariff. The fruits of the small gambling are given and give the company a little insurance against the tariff pressure that is applied to the entire supply chain.

Rivian has even acquired supplies from Gotion High-Tech in China before the American elections and recently worked with the Samsung SDI cell supplier to move a large amount of battery stocks to the United States from South Korea.

In the end, the moves should help reduce the complications and costs of the potential supply chain of definitions, but they will not continue forever. Rivian will have the use of local parts higher than the prevailing car manufacturer, such as Ford Car Company and General MotorsBut the definitions of the parts will continue to imagine the auto industry.

The relief of customs tariffs is welcomed, even if it is not useful as investors want, in the auto industry, and the insight from Rivian to store batteries before the tariff ads is a smart step to help compensate for some costs in the short term. It is important, because the battery cells that Rivian uses from the Gotion vehicle electrification specialist goes largely in the commercial connection car, mainly for the sake Amazon.

But 2025 still proves a faded year for the Rivian, as it seems that its R1 sales have reached its climax, and its R2’s launch will not occur – with a greater degree of prices to attract a larger range of customers – until 2026, and it cannot come soon enough.

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John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Daniel Miller has positions at the Ford Motor and Gres Motors. Motley Fool has positions in Amazon and recommends it. Motley recommends a lie of General Motors. Motley Fool has a disclosure policy.

Sarah’s small news was originally published for Rivian investors by Motley Fool

2025-05-05 11:15:00

0 3 minutes read