Rivian's 2025 outlook was softer than expected, projecting an adjusted EBITDA loss of $1.7 billion to $1.9 billion compared to the consensus of a $1.7 billion loss. "While the guidance has a cushion in the 'hundreds of millions' to EBITDA for potential changes to incentives, regulations, and tariffs, there could be more downside risk if policy changes are enacted," they wrote. "Rivian highlighted impacts from seasonality and the wildfires in Los Angeles, but demand also appears generally soft." The company is also facing increasing competition as new SUVs and CUVs enter the market in 2026 and 2027, analysts highlighted. "There are a growing number of electric SUV/CUVs entering the market which, coupled with what appears to be a slower-than-expected ramp of the R2, could hinder Rivian's longer-term volume trajectory," they wrote. "Among the competition, Lucid has launched the Gravity SUV and plans to add a mid-sized SUV/CUV in late 2026.