Thursday, December 1, 2022
News Rivian Will be Left Out of the New Government EV Bill

Rivian Will be Left Out of the New Government EV Bill

Rivian believes the new EV bill will unfairly penalize the company and its customers

  • Essentially, their cars are too expensive and customers too rich.

  • Among Rivian’s valid points is that all of its production is based in the US.

Rivian’s position is understandable. They are slowly but surely getting on their feet and because production is still in its infancy, costs to the automaker are high. This results in higher sales prices which will make the current R1T and R1S ineligible for the incentives.

Other automakers have had time to amortize production costs which means their customers will have access to a $7,500 federal tax credit as the maximum proposed purchase price will be set at $80,000. As well, the purchaser’s income can be no more than $150,000 a year, twice that for a couple.

As a result, “nearly all of our vehicles would be ineligible for incentives,” James Chen, vice president of public policy for Rivian, said. As we know, the company is not even planning to offer a lower-priced model until 2025, as reported by Automotive News.

What’s especially frustrating for Rivian is that all its production and design facilities are based in the US. Their assembly plant in downstate Normal, Ill. employs roughly 6,000 workers and they will soon be expanding in Georgia on top of their offices in California.

Rivian’s been in contact with Senate leadership and senators from states in which it has interests (Illinois, Michigan, California, and Georgia) to try and get the pending bill amended for startup companies such as theirs. They would like to save the old rules during a transition period.

Trending Now

No Extra Power for S650 2024 Ford Mustang?

Multiple sources say 450 hp for 2024 Mustang GT Ford still planning 500 hp Dark Horse model The next-generation 2024 Ford Mustang is coming...

Faraday Future Again Uncertain About its Financial Situation

The EV start-up has been on the brink of bankruptcy a few times before. The company delayed the first deliveries of its FF91...

Ford Recalls 634,000 Bronco Sport, Escape Models over Fire Risk

Cracked injectors could lead to fire Fix involves new software, drain tube Ford is recalling more than 634,000 Bronco Sport and Ford Escape models...

BMW 3.0 CSL Celebrates 50 Years of M With a Carbon Body and 554 HP

Hand-made carbon fiber highlights CSL Just 50 of these super-Ms will be built BMW has just launched the most hardcore offering in its celebration...

Toyota bZ4X: Cold Weather Tests Show a Much Shorter Range than Advertised

The electric SUV only managed to drive 47% of its WLTP range in Danish tests conducted at 4˚C (39˚F). Even when compared with...
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.