Electric-vehicle maker Rivian Automotive (RIVN) says that many of its models won’t qualify for
new U.S. tax credits.
The Irvine, California-based company said that its R1 series of electric pick-up trucks and SUVs
is not likely to benefit from tax incentives in the new U.S. energy and climate bill that was
passed by the American Senate earlier this week.
However, Rivian said it could qualify for subsidies of up to $40,000 U.S. per vehicle for its
electric commercial vans. The company’s smaller, less expensive R2 line of electric vehicles,
which are due in showrooms in 2025, may also qualify for tax credits because they will have a
domestic U.S. battery in them.
News that Rivian’s current electric vehicles will not qualify for tax credits, combined with poor
earnings results, sent the company’s stock down about 2% in after hours trading.
Rivian said it built fewer than 7,000 vehicles in the first half of this year but reaffirmed its full-
year target to build 25,000 electric vehicles. At the end of June, Rivian said it had unsold
inventory worth $655 million U.S.
Revenue totaled $364 million U.S. in the second quarter, compared with the $337.5 million U.S.
that was forecast by analysts, according to Refinitiv data. The company’s net loss widened to
$1.71 billion U.S., from $580 million U.S. a year ago.
Rivian stock is down 62% this year at $38.95 U.S. per share.
