Please try another search
© Reuters Rivian (RIVN) Says New Climate Deal Puts Them at Disadvantage
By Michael Elkins
Late last Wednesday, West Virginia Senator, Joe Manchin made a surprise agreement to support President Joe Biden’s package of climate and healthcare spending measures. Electric-vehicle startup Rivian Automotive Inc (NASDAQ:RIVN) is warning that the planned revisions to the EV tax credit in the package would put the car maker at a disadvantage to more-established competitors.
Rivian takes issue with a planned cap that would make any electric trucks, SUVs and vans selling for more than $80,000 ineligible for the federal subsidy.
According to The Wall Street Journal, Jim Chen, Rivian’s vice president of public policy said that “the whole point of an incentive is to mainstream a new technology.”
Chen continued, “With any technology you start with a higher price point.”
Under the current legislation, electric vehicles are eligible for a federal tax credit of up to $7,500, but once a car company has sold 200,000 electrified vehicles, the credit begins to phase out and eventually lapses altogether.
Rivian also opposes the proposed income restrictions. Buyers with household incomes of $150,000 or higher—$300,000 for married couples—wouldn’t qualify for the credit on new EV purchases.
If buyers of Rivian vehicles became ineligible for a credit, that would put it at a disadvantage to more established companies such as Tesla (NASDAQ:TSLA) and General Motors Company (NYSE:GM) who had years to build their manufacturing capabilities. “We want the same opportunity Tesla and GM had to ramp up their electric-vehicle production,” Mr. Chen said.
The electric vehicle company is lobbying congress, hoping to convince them to add a two-year transition period to the new tax credit structure. A transition period would allow Rivian time to improve its production process and fulfill its plans to start selling its cheaper model, dubbed the R2.
By Ambar Warrick Investing.com-- Shares of Australia’s largest gold producer, Newcrest Mining Ltd (ASX:NCM), surged on Friday as it logged a higher-than-expected profit despite...
(Reuters) - Russia has failed to gain ground in cyberspace against Ukraine almost six months after its invasion of the country, the head of Britain's GCHQ intelligence service...
By David Shepardson WASHINGTON (Reuters) -General Motors Co and LG Energy Solution are considering a site in Indiana for a fourth U.S. battery cell manufacturing plant, a...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.