Rivian's CEO: Trump's Anti-Electric Vehicle Policies Detrimental to the US but Beneficial for Rivian

      Phillip Faraone

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      From the perspective of Rivian’s founder, CEO, and leader, the situation in Washington D.C. is unfavorable on many levels. However, there are positive aspects, particularly for Rivian (and Tesla).

      At the launch of the 2026 Rivian R1T Quad in Lake Tahoe, California, Rivian’s founder and CEO RJ Scaringe expressed to the media that the policy changes are “bad for the world, bad for the U.S.” Yet, he emphasized multiple times that the shifting political climate in Washington may ultimately benefit Rivian in the long run.

      He was specifically referring to the Trump administration’s recent efforts to repeal several electric vehicle tax credits, such as the $7,500 point-of-sale rebate for consumers, as well as EV manufacturing incentives for automakers and overall subsidies for green energy. (This interview occurred a couple of weeks before the bill was enacted.)

      One might expect an electric truck CEO to oppose these changes, but it’s clear that even as automakers reduce their EV development plans due to decreased demand, the global auto industry is undergoing a transition to electric vehicles. This is no longer the 20th century, where American manufacturers could excel just by scale and dictate the market. They must compete, and despite the White House framing its decisions around trade policies and economic independence, achieving a level playing field is becoming increasingly difficult.

      According to Scaringe, the anti-EV initiatives “remove some of the tailwinds necessary for [the U.S.] to uphold global leadership in technology and the future landscape.” This is concerning as Chinese electric vehicles are quickly entering markets where American OEMs once thrived.

      So, what is the silver lining? Scaringe stated, “From a competitive landscape perspective, I think it’s probably beneficial for Rivian,” and noted that it will also be advantageous for Tesla. As established automakers slow their push for EV products, Rivian has the opportunity to launch its smaller R2 crossover from its Illinois assembly line in 2026 and increase production at a new Georgia factory. A more compact R3 model, based on the R2, is set to follow at a lower price, opening additional global markets for Rivian as other brands lag behind.

      Tesla’s future product strategy is notably less clear, with the Cybertruck proving to be the sales disappointment many anticipated, selling fewer than 5,000 units in the second quarter of 2025.

      However, Scaringe believes that Congress isn’t the primary obstacle for Rivian. Instead, he identifies legacy automakers like GM and Toyota, along with their lobbyists, as the “biggest adversaries” regarding EV and emissions policies, hindering Rivian's attempts to create a “fair game” around issues such as vehicle registration costs. In some states, EV registration fees are higher than those for gas-powered vehicles, which is justified by the argument that electric vehicles do not contribute to gas taxes that fund road maintenance and infrastructure improvements. Starting in 2026, EV buyers in Minnesota will face registration costs that double or exceed those of gas vehicles, projected to generate $40 million from EV owners over the next four years, according to Rep. Jon Koznick, the Republican co-chair of Minnesota’s House Transportation Finance and Policy Committee.

      Nearly four years after beginning deliveries of its Illinois-manufactured EVs, Scaringe and his team continue to battle dealer franchise laws. Due to outdated regulations, heavily influenced by lobbyists, the automaker is prohibited from directly selling its vehicles to consumers in nearly one-fifth of the states. “The primary opponents we expend the most energy against in D.C. are actual car companies,” said Scaringe, which speaks volumes.

      “It reflects their wish for the entire EV movement to simply disappear,” Scaringe remarked, adding that these manufacturers require a level of accountability regarding efficiency.

      With current fuel economy standards, automakers like Stellantis pay EV manufacturers such as Tesla and Rivian to acquire credits compensating for the emissions from their Hellcat-powered vehicles. Companies like GM have historically invested in EVs due to market trends and regulations that necessitated selling more EVs to offset the production of V8-powered cars. Scaringe pointed out that legacy manufacturers may now find themselves needing to offer up to $20,000 in discounts or incentives on a “medium desirability” EV to avoid paying Rivian significant sums to buy credits. With the recent policy changes and potential weakening of EPA fuel economy standards, Scaringe indicated that these automakers might simply choose to stop selling those EVs altogether.

      Currently, General Motors is committing $888 million to develop a next-generation V8 engine, despite it no longer being the dominant truck engine in the U.S.

      Scaringe anticipates that by 2030, the U.S. will encounter an even more challenging environment concerning the lack of options and