Rivian Mad’s Senate Climate Bill Excludes Their $80,000 Electric Trucks
Rivian is not happy with Senate’s new climate package for one big reason: its overpriced trucks cost too much to qualify for the $7,500 tax credit for electric vehicles. Because of this, Rivian says the new bill would actually harm the company and put it at a competitive disadvantage, according to Automotive News.
James Chen, Rivian’s vice president of public policy, said the climate bill negotiated between Senate Majority Leader Chuck Schumer and Democratic West Virginia Sen. Joe Manchin would unfairly benefit rivals like Tesla. and General Motors. Chen says these companies have had more time to ramp up production or do overseas manufacturing, so their manufacturing costs are lower. This means they can sell vehicles at a lower price.
The way the new bill is currently constructed removes the existing EV credit structure (the first 200,000 vehicles produced are eligible for the $7,500 credit, regardless of price). In its place, the new bill would remove the cap of 200,000 units. Instead, the incentives would only apply to vehicles that cost less than $80,000 and customers who earn no more than $150,000 per year ($300,000 for couples).
A quick look at Rivian’s website reveals you’d be hard pressed to find a car they sell for less than $80,000. Of course the R1S and R1T both start under the mark, but not by much. Add a couple option and you are good spent $80,000 on either platform.
While Rivian applauds the intent of the pending bill, “as currently written, this legislation will cut the rug for consumers considering the purchase of an American-made electric vehicle,” said Chen, whose company employs about 6,000 workers at an assembly plant in the downstate. Normal. Although the company announced last week that it was laying off 50 non-manufacturing workers at the plant, Rivian still plans to hire more for manufacturing this year at Normal.
“The final package must extend the transition period to provide consumer choice and protect well-paying manufacturing jobs here at home,” he added.
Chen also claims that the company doesn’t even plan to offer a cheaper vehicle until 2025.
Rivian has reportedly been in touch with Senate leaders and senators from states in which he has interests — such as Illinois, Michigan, California and Georgia — to see if the bill can be amended to allow for startups like Rivian to use the old rules.
As Livia Soprano said, “Poor you.”