Photo: Rivian
Rivian isn’t happy about the Senate’s new climate package for one important reason: Its expensive trucks cost too much to qualify for the $7,500 EV tax credit. Because of this, Rivian says the new bill would actually hurt the company and put it at a competitive disadvantage, according to Automotive News.
James Chen, vice president of public policy at Rivian, said the climate bill negotiated between Senate Majority Leader Chuck Schumer and Democratic West Virginia Sen. Joe Manchin would unfairly benefit rivals like Tesla and General Motors . Chen says these companies have had more time to ramp up production or do some manufacturing overseas, so their manufacturing costs are lower. This means they can sell vehicles at a lower price.
The way the new bill is currently structured eliminates the existing EV credit structure (first 200,000 vehicles produced are eligible for the $7,500 credit regardless of price). In its place, the new bill would remove the 200,000-unit cap. Instead, incentives would only apply to vehicles costing less than $80,000 and customers making no more than $150,000 per year ($300,000 for couples).
A quick look at the Rivian website shows that you would have a hard time finding a car that they sell for less than $80,000. Sure, the R1S and R1T both start under the brand, but not by much. Add a few options and you’re well over $80,000 on both assets.
While Rivian welcomes the intent of the pending bill, “as it stands, this law will cut the ground for consumers considering buying a US-made electric vehicle,” said Chen, whose company employs about 6,000 people at an assembly plant in the US state employed Normal. Although the company announced last week that it would lay off 50 non-manufacturing workers at the factory, Rivian still plans to hire more for production in Normal this year.
“The final package must extend the transition period to give consumers choice and protect high-paying manufacturing jobs here at home,” he added.
Chen also says the company doesn’t even plan to offer a cheaper vehicle until 2025.
Rivian has reportedly been in contact with Senate leadership and senators from states it has interests in — such as Illinois, Michigan, California, and Georgia — to see if the bill can be changed to allow startups like Rivian to apply the old rules .
As Livia Soprano said, “Poor you.”