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 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.

The EV company expects sales to be flat in 2025, but still expects a modest profit for the year.

The electric automaker Rivian said Thursday it’s recorded its first quarterly gross profit even as the company braces for potential U.S. policy changes on incentives, tariffs and regulations that could bring “hundreds of million of dollars” in financial impact.