The firm expects the net price of new vehicles in the U.S. to rise by about $2,000 to $4,000 over the next 6-12 months as car manufacturers pass on tariff-related costs, Reuters reported.
The new trade policies, UBS said, are raising the cost of making a vehicle, subsequently raising the cost of a vehicle for consumers and negatively impacting demand.
A number of stocks jumped in the afternoon session after markets rallied sharply on news that President Trump announced a 90-day tariff pause. Reciprocal tariffs were also dropped to 10% for most countries, sparking renewed optimism amid ongoing trade talks. The major stock indices rose as investors, growing impatient of seemingly irrational tariff actions, welcomed the pause as a sign of a more measured path forward.
The startup wants to crack the formula for building a $25,000 two-seat EV, something established U.S. players like Tesla and Rivian have yet to achieve.
Shares of electric vehicle manufacturer Rivian (NASDAQ:RIVN) fell 6.9% in the morning session after the company reported weak first-quarter vehicle deliveries of 8,640 units, marking a 36% decline compared to the same period in the previous year. While the delivery figure matched both internal guidance and market expectations, the sharp drop hinted at demand and/or production challenges.
The company also reaffirmed its full-year 2025 delivery guidance of 46,000 to 51,000 vehicles. However, the lack of an upward revision likely dampened investor sentiment.
Truist Securities noted that the numbers aligned with the company’s prior commentary and street estimates, although the shares could see headwinds today from Tesla reporting Q1 deliveries below estimates before market open.
Rivian shares drop as Q1 2025 deliveries fall 36.4% YoY, despite a 4.5% rise in production. The EV maker built 14,611 vehicles and delivered 8,640, aligning with previous forecasts.
