Rivian Automotive Inc. makes good on its promise to get to its first quarterly gross profit and blows past Wall Street estimates for its sales.

Startup Rivian Automotive hit a milestone Thursday, reporting its first quarter of gross profit. The hitch: Much of it was driven by sales of regulatory credits to other automakers, rather than electric-vehicle sales.

Key Takeaways Rivian Automotive predicted 2025 deliveries below analysts' estimates.Like electric truckmaker Nikola, which filed for bankruptcy this week, Rivian warned about a challenging environment for EV manufacturers.

Rivian’s cost-cutting measures have gotten it a lot closer to profitability, but the company is warning that 2025 could still be a challenging year --

Rivian Automotive Inc. tumbled after warning it’s poised for a first-ever decline in electric-vehicle deliveries in 2025, heralding a new challenge after the company achieved a long-held profitability goal.

The company expects to sell between 46,000 and 51,000 EVs this year, below the roughly 54,800 average of analyst estimates compiled by Bloomberg.

Rivian said on Friday it is recalling 17,260 vehicles in the U.S. due to a headlight issue that could reduce visibility and increase the risk of a crash.

Rivian has announced a recall of 17,260 of its R1 trucks and SUVs. 2025 models are suffering from inoperative low-beam headlights. Service centers and mobile techs will fit new headlight control modules.