Rivian CEO: Trump Policy Changes 'Bad for the World, Bad for the U.S.' — But Good for Rivian

Yahoo

6 days ago

Since returning to office earlier this year, President Donald Trump has not made life easy on automotive executives. The auto industry has faced rapid changes from both trade and domestic policy decisions, which could have long-lasting and substantial impacts on the market here in the United States.
No segment has faced scrutiny quite like EVs — but the moves don't necessarily hurt the brands you'd expect. Rivian CEO RJ Scaringe said that while he doesn't agree with the moves made by the administration, the impact could actually be positive for Rivian on the whole.
'Honestly, I think the policy changes are bad for the world, bad for the U.S., because I think it takes away some of the tail ends that are necessary for us to maintain global leadership in technology and what is undoubtedly the end state and future state,' Scaringe told reporters during a recent media event. 'But I think for Rivian, it's probably a good thing from a competitive landscape point of view."
"Because you see all the incumbents, they're the biggest adversaries in policy. All the work that we're trying to do to even get it to just be fair game, things like vehicle registration costs — the folks we spend the most energy fighting against in D.C. are actually car companies. So that's very, very telling, because it's reflective of their desire — which is that this whole EV thing would just go away. And that's actually really bad for them.'
Following Trump's signature on the Big Beautiful Bill on July 4, the federal government will no longer offer tax credits tied to the purchase of an electric vehicle after September. Without these funds to bring some price parity to the EV market, there are concerns that the machines will no longer be affordable for average car buyers. That puts automakers in a rather tricky spot, as the development and production of those vehicles has required massive investments. Other markets have not softened their stance on EV adoption, either, which means those cars will have to be developed either way.
That said, Scaringe believes Trump's adjusted strategy will ultimately lead to a worse market for buyers as automakers choose not to incentivize EV sales or development.
'I think in 2030, we're going to have an even worse situation than we have today in terms of lack of choice and lack of competition,' said Scaringe. 'I say this all the time. I think the biggest challenge to get electric vehicle adoption from 8% to 20% is — we need choice. Take Tesla Model 3 and Model Y; great products, but they're not what everybody wants. Meaning it's not that they're not anything bad about them. It's just not everybody wants the same form factor, with the same sort of product trade-offs and decisions and brand positioning."
If the EV market is to see significant growth, Scaringe said, it needs to expand to 300-plus great choices, many of which need to be more affordable — yet today, that sub-$50,000 EV market is dominated by the Model 3 and Model Y. "Tesla... this massive market share they have is not a reflection of a healthy market," he said. "It's a reflection of a lack of choice.'
But with the brand set to expand its lineup soon with the more affordable R2, Scaringe believes Rivian will be well-positioned to benefit from a market where other automakers back away from EV development.
'[It] couldn't be better situation for R2 to be launching into," he said, "where, for the first time, I think customers that want to spend $50,000 are going to have a real [alternative]... not to say it's trying to compete with Tesla in the same brand position, but at the same price point, you'll have a real alternative. I think, truly, the first time where it's like an undeniable, well-engineered product at that price point. And I wish there was five or six of those.'
The executive didn't fully rebuke Trump's approach, noting that Rivian is highly aligned with many of the administration's goals, particularly as it relates to producing products in the United States. Rivian does build all of its vehicles in the U.S., and currently employs more than 16,000 folks throughout the country. The automaker was also responsible for the largest software licensing deal in industry history, selling its wares to a non-U.S. entity in Volkswagen. That's exactly the sort of tech move the president has been hyping up with his rhetoric. Whether or not Rivian will hear much appreciation from Trump as a result, well, that's another story.
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