Rivian CEO warns carmakers against cutting EV investments
Rivian focuses on long-term EV growth despite policy challenges
Rivian Automotive CEO RJ Scaringe commented on the Trump administration's recent rollback of EV-friendly policies, describing the changes as “small speed bumps” for EV makers in the near term.
Scaringe emphasized that these policy shifts would not derail Rivian’s long-term focus, as the company is building a business designed to thrive over decades. Scaringe urged traditional carmakers not to scale back investments in electric vehicles, warning that doing so could leave them unprepared for the rapidly changing automotive landscape in the 2030s, reports Benzinga.
“If you're optimizing purely for profitability in the next two years, you might double down on combustion or hybrids,” he said. “But that’s a big miscalculation for the long term. Rivian, Tesla, and Chinese carmakers have a full-throttle focus on EVs. If it’s just a 10% job for legacy carmakers, they’ll find themselves in rough shape in a decade.”
Policy Challenges Under Trump’s Administration
On Monday, President Trump repealed a 2021 executive order by former President Biden, which aimed for 50% of U.S. vehicle sales to be electric by 2030. Additionally, the administration signalled it may eliminate the $7,500 federal tax credit for qualifying EVs, potentially slowing adoption.
However, Rivian’s current consumer vehicles, such as the R1T pickup and R1S SUV, do not qualify for the tax credit due to their premium pricing. The company plans to address this by introducing the R2 SUV, expected to start at $45,000, aligning it with Tesla’s Model Y. The R2 is scheduled for production in early 2026, aiming to broaden Rivian’s addressable market.
Scaringe reaffirmed Rivian’s commitment to a long-term EV strategy, positioning the company as a key player in the global transition to electric mobility. He cautioned that while short-term EV policy changes may create challenges, the broader shift toward electrification remains inevitable.
With legacy carmakers potentially slowing EV investments, Scaringe views this as both a competitive advantage for Rivian and a potential threat to the U.S.’s overall leadership in EV adoption.
Additionally, Hyundai Motor announced on Thursday that it is in discussions with General Motors (GM) to supply commercial electric vehicles (EVs) to its U.S. counterpart.
