Rivian CEO Warns Legacy Automakers Against Underinvesting In EVs In Light Of Trump's Policy Shift: 'Big Miscalculation For Long Term'

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Rivian Automotive RIVN CEO RJ Scaringe reportedly said on Thursday that he expects policy shifts under the Trump administration to create “small speed bumps” for all EV makers in the near term but warned legacy automakers to not underinvest in electric vehicles.

What Happened: In an interview with InsideEVs, Scaringe said that he is building a business for the next few decades and that unfavorable EV policy will only make it a “a little more challenging” for the next couple of years.

Negative changes to EV policy will affect all EV makers in the near time and cause small speed bumps he said. While rival players underinvesting in EVs in the short term might be good for Rivian from a competition standpoint, it would be bad for the overall shift to EVs in the U.S. in the long term, Scaringe said.

"If you’re optimizing purely for profitability the next two years and you're a traditional legacy manufacturer, you could very easily make the spreadsheet case to say, ‘let’s double down on combustion,' or ‘let’s double down on hybrids,' which I think is a big miscalculation for the long term," Scaringe said in the interview.

"I say this all the time to friends of mine who run big car companies: ‘Don't stop investing. You're going find yourself in the 2030s, upside down.’ Rivian, Tesla, the Chinese—we have a full-throttle focus on EVs. And if you're doing that as your 10% job as an [automaker], you're going to be in rough shape in 10 years."

Why It Matters: Trump on Monday revoked a 2021 executive order signed by former President Joe Biden that sought to ensure that 50% of new vehicles sold in the U.S. by 2030 are electric. The new President also said that his administration would consider ending the $7500 federal tax credit available on select EV purchases.

However, neither of Rivian’s present consumer vehicles is eligible for the tax credit given their high price point. However, the company is looking to expand its total addressable market with the R2 SUV expected to be priced around $45,000, in the same price range as Tesla's best-selling Model Y SUV. R2 is expected to enter production in early 2026.

The company is also planning to start deliveries of its R3 crossover after the R2. The crossover is expected to be priced lower than the R2 SUV but it is unclear whether the R3's price will undercut the Tesla Model 3 or remain within the same range.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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