On Monday, during his first day of mandate, President Donald Trump declared war on the electric car. In a decree, Trump reported his intention to remove the grant of $ 7,500 for the purchase of clean cars, to soften regulations on exhaust gas pollution and, in general, to wear a blow of ax to the policies of the Biden era which contribute to fueling the growth of electric vehicles.
However, the founder and CEO of Rivian, RJ Scarenge, is not too worried about the impact of the change of policy on his business.
“We spend a lot of time talking about short-term finances, but we are building a business for the next decades,” he said in Insideev on Thursday, adding that it was still convinced that transport would one day be 100 % electric. “So, huh, whatever?” It will be a little more difficult in the coming years.
Scarenge said he had not launched Rivian because of what he said, electric vehicle policy could look like the future. And in addition, any change in pro-ve policies will harm all manufacturers of short-term electric vehicles, he said, creating what he described as “small donkey”. We still do not know how it all will evolve, since Trump cannot do it all with a simple line of pen. He will need Congress to remove tax credits for buyers and electric vehicle manufacturers, for example.
The difference between Rivian and certain competitors, however, is that other car manufacturers can rely on their petrol offers if sales of electric vehicles do not take place as planned. Rivian, based in California, only manufactures vehicles powered by battery: the robust SUV R1S and the R1T pick-up, as well as a commercial van. This fact worries Scarenge. But it does not envy their flexibility – he rather hopes that the next withdrawal of the electric vehicle policy will not oblige other companies to brake electric vehicles too strong.
Photo by: Insideevs
If competing car manufacturers give priority to immediate financial considerations and under-invest in electric vehicles, this could actually be good for Rivian from the competition point of view, he said. But that would leave the United States lagging behind in the global transition to long-term electric cars. And that would leave the country with an underdeveloped electric market and not enough choices for consumers.
“If you optimize only profitability for the next two years and you are a traditional manufacturer, you could very easily use the spreadsheet to say:” Doublons the bet on combustion “or” Doublins the bet on hybrids “. What, in my opinion, constitutes a serious long-term calculation error, “he told journalists during a round table on Thursday.
Photo by: Insideevs
It doesn’t matter where American policy goes or not, the transition to electric transport is on track worldwide. Take China, for example. This country has exploded on the stage as the largest and most advanced electric and electrical car manufacturer on the planet. Sales of electric vehicles are experiencing rapid growth in China and local car manufacturers, like Byd, are progressing at a frantic pace worldwide.
Sales of internal combustion vehicles have reached a world summit in 2017 and have been declining since. Government policy has triggered this change and certainly contributes to it, but the demand of consumers and the fall in the prices of electric vehicles will continue to maintain it, say the experts.
Photo by: Insideevs
“I say this all the time to my friends who direct large car manufacturers: ‘Do not stop investing. You will find yourself in the 2030s, upside down, ”said Scarenge to Insideevs. “Rivian, Tesla, the Chinese: we focus at full speed on electric vehicles. And if you do this as your work at 10 % as (car manufacturer), you will be in a difficult situation in 10 years. »»
No one really knows what policies will be struck by the ax under Trump and which are safe. Car manufacturers are pressure for certain incentives to remain in place, as they have already engaged billions of dollars in the construction of electric vehicle and batteries in the United States. The fact that a large number of these new factories and jobs are emerging in states led by the Republicans could act as a shield too. Rivian, for his part, built his second factory in Georgia.
The start-up automaker provides for the disappearance of the incentive of $ 7,500 for the purchase of electric vehicles (known as 30D), and Scarenge thinks that the tax credit which subsidizes the manufacture of batteries in the states- United (45x, if you are curious) could also end. The two programs were created by the law on the reduction of inflation, which has devoted unprecedented sums to initiatives in terms of clean energy. “What is absolutely clear is that the bases of IRA will be deleted,” he said.
The end of incentives for the purchase of electric vehicles will not make a huge difference for sales of R1S and R1T, the two Rivian consumer vehicles, said Scaring. Rivian customers are generally not based on credit income limits, since these models generally cost more than $ 90,000. “It is rather a question of R2,” he said, referring to Rivian’s next more affordable crossover which will arrive in 2026. He did not comment on credit for rented vehicles, which does not impose income ceiling.
Rivian launched its first electric vehicle at the end of 2021 and sold just over 50,000 vehicles in 2024, but has not yet made any benefits. The startup hopes that R2 will bring him the type of scale necessary for long -term financial health. An investment of $ 5.8 billion in Volkswagen should also help.
Do you have advice on the world of electric vehicles? Contact the author: Tim.levin@insideevs.com
