Rivian’s founder and CEO RJ Scaringe commented on Tuesday the potential impact of the auto tariffs imposed by U.S. President Donald Trump but also on the ongoing trade tensions between the wordl’s two largest economies — United States and China.
In an interview with Fox Business, Scaringe said that despite the company’s “very United States-centric supply chain,” every EV model will face “a real challenge.”
“I think there’s just a lot of questions from consumers around what’s gonna happen,” the chief executive stated, referring to concerns about pricing and available models. “We’re trying to navigate that as thoughtfully as we can,” he added.
Supply Chain
Rivian produces all its EVs — the R1S SUV, the R1T pickup truck, and the commercial van — in its plant in Normal, Illinois.
“All of our technology is developed here as well,” Scaringe mentioned, adding that “motors” and “big pieces” are also built domestically.
Rivian is expanding its Normal plant by more than a million square feet, with the chief executive noting that the company currently employs “just under 17,000” people.
When asked about where the steel and aluminum used in the production come from, Scaringe stressed that the automotive supply chain is “complex” and the brand has “been very focused on building […] our production footprint here in the U.S.”
Tariffs Impact
“The 25% auto tariffs hit everybody, we do rely on a supply chain that has a number of components that come from other countries,” Rivian’s founder said, adding that “given the new environment from a tariff point of view, we’re working really hard to see what we can change. But they’re difficult to change.”
Trump imposed a 25% tariff on imported vehicles and parts, rolling out duties on all imports from outside the U.S. in early April, with rates up to 54% for Chinese goods.
China retaliated with higher tariffs and export restrictions on rare earth elements, escalating trade tensions. Earlier on Wednesday, tariffs hit 245% on Chinese imports to the U.S. and 125% on U.S. goods to China.
Although Trump announced last week that he was pausing tariffs for 90 days amid negotiations, he kept all measures against China in place. The tariff on imported vehicles and auto parts also remained at 25%.
On Modany, President Donald Trump stated he was looking to “help some of the car companies” without detailing any measures or next steps.
Scaringe stated that “what we’re seeing in terms of rare earth metals out of China, that’s a real challenge for electric vehicles”. Although these rare earth metals can be found anywhere, “in terms of geology,” “the proccessing of the materials happens almost exclusively in China,” he highlighted.
Competition
Rivian’s chief executive said “It’s important we recognize, when we look at the whole electrifying industry, there needs to be many winners,” mentioning not only Rivian but also Tesla’s success.
When asked about Chinese EV brand’s global success, Scaring replied that, for the California-based brand, “a huge part of this is giving customers choice.”
“If you’re looking at buying an electric vehicle for under $50,000 today, there’s really very, very few highly compelling choices,” the executive noted. “For that reason, you’ve seen Tesla with [a] very significant market share for a long time now, over 50% market share. And that’s actually a reflection of limited great choices.”
Earlier this month, S&P Global Mobility estimated U.S. light-vehicle sales to settle between 14.5 and 15 million units a year in the coming years, amid tariffs impact. In 2024, sales hit 16.03 million units, with 54% (8.7 million) made in the U.S. and 46% imported.
According to Cantor Fitzgerald, Rivian is “one of the most impacted by the auto parts tariffs since the company is not as vertically integrated and is sourcing several components from overseas.”
The company is reporting its first quarter’s financial earnings on May 6, after the market closes.
As of the time of writing, Rivian is trading at $11.72, 1.6% lower. In the past twelve months, the stock surged 36%.
