Rivian Faces Nearly $100 Million Revenue Shortfall Amid Trump's Fuel Economy Rule Reversal: Report

The rollback of fuel economy rules under the Trump administration has caused a significant revenue delay for Rivian RIVN and its competitors.

NHTSA Freeze Blocks Rivian's Fuel Economy Credit Deals

The Trump administration’s decision to remove penalties for violating fuel economy standards has led to the National Highway Traffic Safety Administration (NHTSA) halting the issuance of paperwork needed to finalize credits, reported The Wall Street Journal.

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This move has frozen approximately $100 million in revenue for Rivian and its peers, who have been relying on the sale of credits linked to the nation’s fuel economy rules. The NHTSA has stated that this change is part of a broader effort to revise the Corporate Average Fuel Economy (CAFE) standards.

Rivian's director of public policy, Christopher Nevers, said the company had secured regulatory credit agreements that it is now unable to complete due to the current situation.

The Zero Emission Transportation Association, an electric vehicle trade group, has petitioned the U.S. Court of Appeals in Washington, D.C., urging the NHTSA to resume issuing compliance letters that show whether manufacturers are meeting or violating the country's fuel economy standards.

Regulatory credit trading—a common tool governments use to incentivize industry compliance with environmental rules—has long provided a steady revenue source for EV manufacturers. The current dispute arises from President Trump's July move to remove penalties for breaching fuel economy standards.

Tesla, Lucid Also Hit by Fuel Credit Elimination

The rollback of fuel economy rules has significant implications for the EV sector. Previously, Tesla Inc. TSLA had made $2.76 billion from ZEV credits in 2024, but this revenue stream was eliminated by Trump’s tax bill.

This policy shift has not only affected Rivian but also other EV manufacturers like Lucid Group Inc. LCID, which are already grappling with significant cash burn. The current situation underscores the importance of regulatory credits for the financial health of EV manufacturers and the potential challenges they face due to policy changes.

According to Benzinga Edge Stock Rankings, Rivian has a growth score of 24.0% and a value rating of 67.76%. Click here to see how it compares to other leading EV companies.

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