Rivian's CEO explains why he believes losing the $7,500 EV tax credit is a good thing
Published on Nov 26, 2025 at 9:21 AM (UTC+4)
by Claire Reid
Last updated on Nov 26, 2025 at 9:21 AM (UTC+4)
Edited by
Claire Reid
Rivian CEO RJ Scaringe has explained why he believes losing the $7,500 federal EV tax credit was a good thing for the company.
The federal tax credit ended on September 30, effectively making most EVs $7,500 more expensive.
In the run-up to the tax being scrapped, there was a surge in sales of electric vehicles in the States.
However, most automakers agreed that after the tax was gone sales would fall.
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Rivian CEO says losing the EV tax credit was good for the company
With the EV tax credit gone, some carmakers appear to be rethinking their EV strategy, especially when it comes to releasing cars into the US market.
In September, Stellantis confirmed it was scrapping its proposed electric pickup, while more recently reports have suggested Ford might be ditching the Ford F-150 Lightning from its line-up.
While that isn’t good news for EV-lovers, Rivian CEO RJ Scaringe has said that it makes things easier for his company.
Speaking at the Rotary Club of Atlanta, he noted that with fewer EVs being made, there’s less competition for Rivian.
“I would say in the medium to long term, it actually simplifies things for Rivian,” Scaringe said.
“Narrowly and myopically through the lens of Rivian, it actually creates less competition.”
Despite that, he went on to say that carmakers shouldn’t be too quick to turn away from electrification, hailing it as ‘undeniably the future state’ of the automotive industry.
He warned that US automakers who are scaling back on their EV offerings risk making things ‘extremely hard’ for themselves in the future, particularly when it comes to carmakers in China.
The CEO has previously warned US carmakers need to keep up with China
This isn’t the first time Scaringe has issued a warning to legacy carmakers when it comes to Chinese cars.
Speaking on the Plugged-in Podcast back in September, the CEO said that legacy automakers were getting too caught up on cost, rather than quality.
“If you’re looking at the whole industry, the technology [in China] is much better,” he said.
“If I was an existing manufacturer, I’d get less hung up on the cost and more focused on ‘the cars are actually better.’”
And he’s not alone in his concerns, Ford CEO Jim Farley has previously said he thinks Ford has no future if it can’t keep up with Chinese carmakers.
“Seventy percent of all electric vehicles are made in China,” he said in August.
“We are in a global competition with China… and if we lose this, then we do not have a future at Ford.”
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Claire Reid is a journalist who hails from the UK but is now living in New Zealand. She began her career after graduating with a degree in Journalism from Liverpool John Moore’s University and has more than a decade of experience, writing for both local newspapers and national news sites. Claire covers a wide variety of topics, with a special focus on cars, technology, planes, cryptocurrency, and luxury.
