Why Did Rivian Stock Jump Today?

[Christopher1000]

I’m guessing because the 25% tariff as Rivian is mostly US manufacturing/parts:

https://www.axios.com/2025/03/27/trump-auto-tariffs-vehicles-cars-trucks-suvs

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[zefram47]

I’m guessing because the 25% tariff as Rivian is mostly US manufacturing/parts:

https://www.axios.com/2025/03/27/trump-auto-tariffs-vehicles-cars-trucks-suvs

That link is far too simplistic of a way to look at it. Yes, Rivians are all assembled in the USA, but you need to look at the parts used and how many of those are sourced in the USA vs overseas. I tried looking, but it doesn't seem that Rivian declares the parts content origin...I saw somewhere mention that it was due to the weight they didn't need to. A vehicle purchase I had in 2021 did show the country of origin percentage for the parts.

 

[BigSkies]

That link is far too simplistic of a way to look at it. Yes, Rivians are all assembled in the USA, but you need to look at the parts used and how many of those are sourced in the USA vs overseas. I tried looking, but it doesn't seem that Rivian declares the parts content origin...I saw somewhere mention that it was due to the weight they didn't need to. A vehicle purchase I had in 2021 did show the country of origin percentage for the parts.

The tariff PR piece was incredibly vague. If I'm interpreting it correctly, it will initially apply only to vehicles where final assembly happens outside of the US. They will later establish a methodology to determine US made components.

I don't think those writing it actually know much about the automotive industry or how they plan to implement any of this.

 

[SANZC02]

…I don't think those writing it actually know much…

You probably could have stopped here.

 

[BigSkies]

I was looking through the lists of some of the cars most impacted. Tacoma's and 4Runners are all made overseas, and likely have very few US made components. Same with Land Cruisers.

It also looks like a lot of truck/SUV engines and transmissions are made in Mexico, even for cars assembled in the US.

It's hard to tell for sure, but it looks like a lot of the ICE vehicles people might cross-shop with an R1 or R2 are going to be heavily impacted by tariffs.

If Rivian is smart, they'll start drawing down on that DOE loan right when the inevitably media frenzy happens in May/June when tariffs start to bite and some smaller car makers like Mazda and Mini pull out of the US entirely.

 

[HaveBlue]

Tacomas used to be made in Fremont and are now made in Mexico. First Japan loses the China market and now the USA. They will focus on third world countries with cheaper products.

 

[Donald Stanfield]

I also think it's funny how so many US companies shifted production to Mexico and will probably be hurt by these tariffs more than many foreign companies. GM, especially, who got a bailout from their terrible management by US taxpayers once already.

 

[Zoidz]

The tariff PR piece was incredibly vague. If I'm interpreting it correctly, it will initially apply only to vehicles where final assembly happens outside of the US. They will later establish a methodology to determine US made components.

This is what they said on CNBC yesterday.

We know at least some of a RIvian comes from overseas based on previous threads - some castings are stamped "China". At least on the R1 Gen1, we know that wheels were coming from overseas. We know that the motors and body panels are made in Normal, seats are made in US by Hyundai. Electronics? I suspect some of them are coming from overseas.

Hopefully 100% does not truly mean 100% everything and is defined as "major components" or something like that. Circuit board discrete components will never all be made in the US. How deep and nitpicky will this be?

 

[HaveBlue]

Actually large amounts of chips are being brought back. That has been going for years. Even tsm is building a foundary in the USA in case China invades Taiwan.

Mini is part of BMW and they have had a plant in the Carolinas or Georgia for decades. Everyone will have to adapt.

The struts are Monroe which was USA but maybe got bought by the French.

It's an international economy. If you're not part of it, you end up like Indonesia with insane tariffs and people have to try to figure out how to build something they can't buy. They end up far behind. Even Russia with their disfunctional domestic system relies on the rest of the world for technology.

 

[Zoidz]

Circuit board discrete components will never all be made in the US. How deep and nitpicky will this be?

Actually large amounts of chips are being brought back. That has been going for years. Even tsm is building a foundary in the USA in case China invades Taiwan.

I agree regarding chips. That's why I specifically stated "discrete components" meaning capacitors, resistors, diodes, voltage regulators, connectors, etc.

 

[HaveBlue]

I agree regarding chips. That's why I specifically stated "discrete components" meaning capacitors, resistors, diodes, voltage regulators, connectors, etc.

Bring back Radio Shack lol!

 

[MacO512]

I sold all my Rivian shares when it was at 11.50 probably around 6 months or so ago. Had bought some at a low point and just thought we would see another dip, instead it went up at that time. I've been anxious to get back in a long position as I'm bullish long term and a believer in the company.

Finally had a lower buy price today so I bought a big lot at $10.52 a share.

Rivian actually has much more American content than a lot of automakers so in theory seems the tariff should hurt them less than other brands. They don't really export yet. I just think theyre so far ahead of a lot of competion as well as a great brand eventually we'll have sales/profit follow. EVs havent taken off in the US as it seemed they might but over 10 years I think we really will see that change. But who knows.

Excited to be back in a long position! We'll see what happens. If prices drop at some point into 9.xx range I might even buy another lot.

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