Tesla, Inc. (TSLA) reported a 13% year-over-year decline in first-quarter vehicle deliveries for 2025, noting significant drops in Europe and China. The company’s automotive margins fell from 15.5% to 11.3% while its U.S. market share of electric vehicles dropped below 50%, down from 63% in 2022. In 2024, Tesla experienced its first annual delivery decline.
Rivian Automotive (RIVN) delivered 8,640 vehicles in Q1 2025, a decrease from 13,588 units in the same period last year, and revised its 2025 delivery forecast to 40,000-46,000 vehicles, down from 51,579 in 2024. The company’s gross margin was reported at 17%, and it expects cash burn to remain a concern, with an expected $1.9 billion capital spending this year impacting financials.
Both companies currently hold a Zacks Rank #3 (Hold), reflecting the uncertainty in their near-term prospects, with Rivian presenting a potential higher-reward, higher-risk investment centered around its upcoming R2 SUV launch scheduled for 2026.
