Rivian CEO Downplays $7,500 EV Tax Credit Concerns: 'Not A Political Thing'

Rivian Automotive RIVN CEO RJ Scaringe is brushing off concerns that Donald Trump’s proposed elimination of the $7,500 EV federal tax credit could mark the end of electric vehicles.

While Scaringe believes his company is positioned well for the future of EV growth, he warns that the end of the credits could be bad for legacy automakers.

What Happened: Scaringe said policy changes to items like the federal tax credit could be "small speed bumps" for Rivian and the entire electric vehicle sector during the opening of a new showroom in San Francisco recently.

"I started the company with the view of making highly compelling products, and none of my decision to start Rivian had anything to do with what the policy was going to look like," Scaring said at the event, as reported by Electrek.

Scaringe said that the potential elimination of the $7,500 tax credit would be "equally applied to all," which could mean a level playing field for all companies in the electric vehicle sector.

"The future of transportation will be electric."

Scaringe said policy revisions like this can't slow down the long-term trend of electric vehicle growth and the necessity of having more electric vehicles on the road.

"This is not a political thing. It's not like the left wants to move to electrification. It's that the future of transportation will be electric."

The Rivian CEO said the ending of the federal tax credit could see some legacy automakers invest less in their EV business segments, which could benefit his company.

"The challenge with some of these short-term changes, for the world and for the U.S. leadership in technology, is that it will cause some manufacturers to invest less in electrification."

Scaringe tempered his optimism, noting that while the change might benefit Rivian, it's ultimately "bad for the world."

Read Also: Rivian Q3 Earnings Highlights: Revenue, EPS Miss, CEO Confident In Q4 Gross Profit, R2 Being ‘Fundamental Driver’ Of Growth

What's Next: Scaringe shared that the Volkswagen joint venture could lead to more partnerships with legacy automakers saying, "OEMs are knocking on our door."

The comments from Scaringe come after Rivian recently closed its loan agreement with the Department of Energy which will help finance its new EV manufacturing plant in Georgia.

The new plant will be home to the production for the upcoming R2 SUV and R3 crossover, which will come with lower starting price points than the R1S and R1T and are expected to usher in the next era of growth for Rivian.

The R2 is expected to begin production in early 2026 at Rivian’s Illinois factory, with plans to transition production to the Georgia factory, which is set to begin construction in 2026, by 2028. Once operational, the Georgia facility is projected to produce up to 400,000 vehicles annually.

Rivian aims to have annual vehicle production capabilities of 615,000 units between the two facilities in the future.

Rivian produced 49,476 vehicles and delivered 51,500 vehicles in 2024.

RIVN Price Action: Rivian stock is down 1.7% to $12.62 on Tuesday versus a 52-week trading range of $8.26 to $18.86. Rivian stock is down 22% over the last year.

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