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Yahoo
12-07-2025
- Automotive
- Yahoo
What Will It Take for Rivian Stock to Survive the EV War?
The U.S. electric vehicle industry is going through turmoil, to put it mildly. The industry has been saddled with tepid demand, production overcapacity, President Donald Trump's auto tariffs, and an escalating price war that's taking a toll on profitability. EV tax credits will also be phased out later this year, which presents yet another challenge for the industry, as automakers struggle to boost sales. This Underdog AI Stock Just Got a New Street-High Price Target Texas Just Passed Quantum Computing Legislation. How Should You Play IONQ Stock Here? 'The Most Patriotic Thing You Can Do Is Not Pay the IRS' Says Grant Cardone as OBBBA Signed into Law — Here's How Much You'll Save Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Even U.S. EV market leader Tesla (TSLA) has reported a double-digit decline in deliveries for two consecutive quarters, following an annual drop last year, the first in the company's history. Legacy automakers like Ford (F) and General Motors (GM) have scaled down their ambitious EV production targets with the profitability deadline getting kicked down the road. Things have been even troublesome for startups, many of which have simply gone out of business after collectively burning billions of dollars in cash. In the U.S. startup EV space, Rivian (RIVN) and Lucid Group (LCID) apear to be the only credible players worth discussing. However, the competition in the industry is set to intensify amid the launch of new models, particularly in the budget range. In this article, we'll look at Rivian's outlook in light of the continued EV industry turmoil. Currently, Rivian has a limited portfolio and sells the R1T pickup along with the premium R1S SUV. It also sells electric delivery vans (EDVs), and while it was previously selling these solely to Amazon (AMZN) – its largest shareholder – it has now started selling the vans to other customers. While these are still early days, Rivian has several accomplishments to its name, and its cars have received rave reviews and score high on customer satisfaction. R1S is the best-selling electric SUV in the premium segment, which is no small achievement. Rivian's EDV was the best-selling electric delivery van in 2024, outselling Ford's E-Transit. Last year, the R1T became the first full-electric pickup to earn the Top Safety Pick+ award from the Insurance Institute for Highway Safety (IIHS). Despite having an attractive product portfolio, Rivian's production figures tell a somber story. The company lowered its 2025 production guidance to between 40,000-46,000 from the previous guidance of 46,000-51,000. The company produced 49,476 vehicles last year and 57,232 vehicles in 2023. Essentially, 2025 looks set to mark the third consecutive year in which the startup reports a yearly fall in production. However, Rivian has managed to produce gross profit and has posted positive gross margins for two consecutive quarters. While Rivian is still posting net losses, it has managed to narrow the loss per car significantly amid relentless cost cuts. Importantly, it achieved positive gross profits in Q1 2025, even after excluding regulatory credits, which is quite encouraging. The company expects its more affordable R2 to have a better gross margin profile and said that its bill of materials would be half of R1. Rivian is also optimistic about achieving positive earnings before interest, tax, depreciation, and amortization (EBITDA) in 2027. Rivian has a reasonably strong balance sheet and held $7.2 billion in cash, cash equivalents, and investments at the end of March. Additionally, the company expects to receive another $3.5 billion from Volkswagen (VWAGY), even though some of it is subject to Rivian meeting preset milestones. Rivian is also set to receive a subsidized $6.6 billion loan from the Department of Energy to build its Georgia factory. However, that money is yet to be paid out, and there is always a risk of it being rolled back, given President Donald Trump's not-so-friendly view of electric cars. Rivian has tried to downplay that risk, though, emphasizing that the plant would help bring more manufacturing jobs to the U.S., which aligns with the administration's goals. Rivian fulfils the basic requirements that I believe every EV startup should have – a good product proposition, ability to raise cash, and a credible management team. However, that's only a starting point, and Rivian needs to return to growth while improving its margins. Rivian has managed to turn gross profit positive, and the Volkswagen partnership will not only help it secure the much-needed capital, but also flow to its income statement through the joint venture. However, it now needs to scale up significantly to become a serious player in the industry, as the current sales volumes are simply too low to establish it as a credible challenger to incumbents. The upcoming R2 vehicles, which start at $45,000, will be a good addition, but they will face steep competition. Incidentally, by the time Rivian starts delivering its R2, Tesla should be delivering its upcoming affordable model that has been in the works for a long time. The withdrawal of EV tax credits is another blow to Rivian, as not only did its current portfolio benefit from these credits through a leasing loophole, but importantly, the R2 vehicles would have been eligible given their price tag. Overall, Rivian continues to face multiple headwinds. A lot now rests on the launch of R2 products, which in some ways could be the 'Model 3 moment' for Rivian. Tesla achieved scale and subsequent profitability with the launch of the Model 3 and Model Y, but that was a different time. Not only did Tesla have a literal free pass as no other company was really serious about electric cars, but there was also an initial set of EV enthusiasts craving new models. Cut to 2025, and there is no dearth of electric cars in the U.S., and the industry is quite oversupplied. All said, I will continue to stick with Rivian for now and evaluate how the R2 plays out, as it could pretty well be the distinguishing factor between Rivian becoming a success story or fading away like most other startup EV companies. On the date of publication, Mohit Oberoi had a position in: RIVN, LCID, F, AMZN, GM. All information and data in this article is solely for informational purposes. This article was originally published on
Motor Trend
09-07-2025
- Automotive
- Motor Trend
How the One Big Beautiful Bill Will Affect Car Buying and Ownership
On July 4, President Trump signed the 'One Big Beautiful Bill' Act into law. The budget reconciliation bill made big changes to federal spending, taxes, and regulation, some of which will have big effects on car owners, enthusiasts, and the automotive industry. We've read through the 879-page bill and outlined the parts that'll affect your next car purchase, the price of gas, and your commute. The "One Big Beautiful Bill" affects car buying by altering tax deductions on auto loans, ending EV tax credits, reducing CAFE penalties to zero, and cutting grants for clean vehicles. It also impacts gas and power prices by changing drilling and energy policies. This summary was generated by AI using content from this MotorTrend article Read Next Because this is a reconciliation bill, which modifies existing budget legislation rather than starting from scratch, there are limits to what can be included in the legislation. Everything in the bill has to be directly related to government spending and taxation, so some of the changes are creatively written in order to make the cut. (As always, please consult your tax professional before making financial decisions. The below is provided for information purposes only and is not tax or financial advice.) 'No' Tax on Car Loan Interest This one is confusing, and 'no' is in quotation marks because it's misleading. Car buyers looking to finance their next purchase may be able to write off some—but not all—of the interest charged on the loan each calendar year on their taxes. That's not the same as abolishing or suspending the tax altogether, as the claim implies. There are also a number of rules for qualifying which will cut off a lot of buyers. First and foremost, the vehicle you're buying has to be assembled in the U.S. That will be confusing for some buyers, because some of the bestselling vehicles in the U.S, such as the Toyota RAV4 and Chevrolet Silverado, are built in multiple plants, not all of them in the U.S. The IRS will know where your vehicle is made because you have to supply the VIN when claiming the tax deduction, and that number includes a digit that represents the country of origin. The tax deduction doesn't apply to leases, either, only purchases. It appears to apply to both new and used vehicle purchases, as the legislation makes no distinction. Vehicles with salvage titles and parts cars don't count, either. Similarly, it doesn't apply to anything with a gross vehicle weight rating over 14,000 pounds (which is the rating of a Ford F-350, as an example). Commercial vehicles qualify but only if they're for personal use, not business use. Business fleet purchases don't qualify, so be careful if you're planning to register your vehicle to your small business in order to take advantage of other tax incentives. If your purchase qualifies, there are still more rules. The tax deduction is capped at $10,000 per calendar year, so if you pay more than that in interest, the balance will still be taxed. If you make more than $100,000 per year as an individual or $200,000 per year as a joint filer (married or similar), the amount of interest you're able to deduct goes down by $200 for every $1,000 of income you earn over $100,000 (individual, or $200,000 combined). Do the math and it means no tax credit for anyone making over $150,000 individually or $250,000 combined. Finally, the tax credit is only available for a limited time. You can't start counting interest payments towards a deduction until January 1, 2026, so the rest of this year doesn't count. The tax credit will expire on December 31, 2029 unless Congress extends it. EV Tax Credits End September 30 The (up to) $7,500 federal tax credit for new and used EVs now expires on September 30 of this year. Previously, both tax credits were scheduled to expire on December 31, 2032. Likewise, the tax credit for commercial EVs expires the same day. State tax credits are not affected. On a related note, the federal tax credit for installing an EV charger or renewable fuel dispenser at your home or business will expire even sooner, on July 30 of this year. Tax credits have been a huge driver of EV sales to date, so the end of them could cause final vehicle sale prices to rise and sales to plummet. A large drop in sales could lead automakers to discontinue some or all of their EVs, reducing choice in the market. Lower cost EVs with smaller profit margins would be vulnerable, which could lead to only more expensive EVs on the market. Less Help With Bad Auto Loans Stopping predatory auto loans had been a major focus for the Consumer Financial Protection Bureau during the Biden administration, but enforcement is likely to drop off substantially after the passage of this bill. Funding for the bureau is cut by 54 percent, which will drastically reduce the number of investigations and actions it's able to execute. No Penalties for CAFE Violations Because this is a reconciliation bill, Congress could not make changes to vehicle emissions and fuel economy laws. Rather than replace or abolish the Corporate Average Fuel Economy program (CAFE), this bill keeps all the existing rules in place but reduces the penalties for breaking them to $0.00. This means automakers are free to ignore federal fuel economy regulations as the EPA cannot meaningfully enforce them. This could potentially affect consumers in multiple ways. If automakers stop following CAFE rules, fuel economy could go down and emissions could go up. Any savings on R&D could then be passed on to the consumer. This is unlikely, however. Automakers plan as much as a decade in advance, so vehicles for sale today were engineered years ago and the money already spent. Future iterations of Congress and future presidents could also reinstate the penalties in a few years, which would wipe out any savings and put automakers behind on R&D. Fuel economy regulations elsewhere in the world aren't changing, so there's little incentive for automakers to cut R&D spending regardless, meaning no reduction in pricing is likely. No More Money for Clean Commercial Vehicles Businesses and local governments around the country have taken advantage of federal grants to help offset the cost of replacing older heavy duty commercial vehicles with EVs. These grants were commonly used to replace old, diesel school busses with new, electric versions and also covered installation of chargers and training employees to work on those vehicles and chargers. Any grant money not already spent has been taken away. Similarly, grants for reducing diesel exhaust emissions in low income and disadvantaged areas have been cut, with all unspent money withdrawn. Funding has also been cut for an EPA program which studies the health and environmental effects of fuel additives. Reduction in Tax Credits for Commuters If your employer provides a transit passes, vanpool reimbursement, parking passes, or a bicycle commuting reimbursement, the amount you're able to deduct on your taxes is going down. Previously, you could deduct up to $175 per month each for your vanpool, transit pass, or parking pass. Now, you can only deduct up to $175 total per month for any combination of those services. The deduction for bicycle commuting has been eliminated entirely. No More Money or Credits For Home Solar and Battery Backups This is tangential to car buying and ownership, but if you were planning to take advantage of tax credits to install solar panels and battery backups in your home to offset the cost of charging an EV, you're out of luck. Any money not already spent on those grants and tax credits has been rescinded. Likewise, the business tax credit for building specifically energy efficient new homes has been cut, along with business tax credits for training contractors to install solar panels, batteries, and more efficient appliances. Gas and Power Prices Could Be Affected Portions of the bill addressing oil drilling and the Strategic Petroleum Reserve may have a small impact on gas prices in the future. Various provisions restart new oil and gas drilling leases both in the U.S. and offshore in its oceans, which would eventually add to the global oil supply and potentially push down prices. However, it will take years for any new leases to be acquired, explored, drilled, and turned into production wells, and oil companies are already sitting on a large number of unexplored leases. Because oil is a globally traded commodity, adding more supply doesn't necessarily change the price of a barrel of oil, nor the price of a gallon of gas. The bill also requires the government to abandon a plan introduced during Trump's first term to sell down part of the Strategic Petroleum Reserve. Instead, it requires the government to buy more oil it can store for future emergencies. Presidents like to draw on the Strategic Petroleum Reserve during times of high gas prices, but the quantities withdrawn are typically so small they have little to no impact on lowering the price at the pump. With regard to electricity generation, the bill paves the way to reopen old, closed power plants and cuts tax credits for wind and solar farms. Old power plants will now be able to reopen without any retrofitting of modern pollution controls, which could make them economically viable, although it depends on the individual plant. New wind and solar farms now have a shorter window to begin operations before the tax credits are cut off, and the lack of credits is expected to make new such farms economically unviable in the future. Fewer wind and solar farms means energy prices are less likely to go down or remain flat, while old power plants coming back online could partially offset their absence at the cost of greater air pollution in those communities. The bill also undoes several provisions of the Inflation Reduction Act, which provided loans and grants for electrical infrastructure improvements nationally, including transmission line improvements in particular, as well as integrating offshore wind farms into the power grid and improving electrical infrastructure on tribal land. Any reductions in electricity prices or increases in reliability these improvements may have provided are off the table. Similarly, by cutting the clean hydrogen production credit several years earlier than planned, the bill will likely slow or halt the adoption of clean sources of hydrogen and slow or stall the nascent hydrogen vehicle industry, both for private and commercial vehicles. Most hydrogen today is produced from gas and oil, which is both cheaper and dirtier than clean alternatives.
Auto Blog
08-07-2025
- Automotive
- Auto Blog
Slate's Sub-$20k EV Won't Come Close To That Price
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Slate Truck Gets A 20% Price Adjustment In April, Slate Auto launched an electric truck that it was expecting to sell for less than $20,000 after federal incentives, but with President Trump's so-called 'Big Beautiful Bill' bringing an end to EV tax credits after September 30, Slate is being forced to adjust its expectations and pricing. As first noted by TechCrunch, the automaker has quietly updated its website to say that the base 'Blank Slate is expected to be priced in the mid-twenties,' indicating a price hike of around 20%, if not more, as this estimate is still 'subject to change' and excludes 'taxes, fees, and accessories.' The automaker did not explain the change, but it seems directly tied to the loss of those tax credits. 0:02 / 0:09 Walmart is selling an 'incredible' car cleaning kit for $20, and shoppers say it makes 'any vehicle shine' Walmart is selling an 'incredible' car cleaning kit for $20, and shoppers say it makes 'any vehicle shine' Watch More Pricing Will Surely Impact Demand Source: Slate After Slate announced its initial targeted starting price, it amassed over 100,000 reservations in just two weeks. Guessing how much an EV can be sold for long before production begins is extremely difficult, but buyers are clearly starved for affordable options. Now that the price is set to increase by several thousand dollars (or, more accurately, the price will not be discounted by $7,500), Slate will likely lose many of those pre-orders. Between now and Slate's targeted initial delivery date of late 2026, plenty can change, including the cost of batteries, so the start-up may still find a way to keep pricing competitive, but there are pressures from other areas, too. Rivals Are Edging Closer To Their Own Cheap EVs The Slate EV starts out with just the essentials, which means that many of the everyday features that appear in most mainstream cars will be missing or optional, and once those options are totted up, the price will likely inch closer to $30,000 than many had originally hoped, and that puts the truck in a very competitive range. Chevrolet is building two affordable EVs that are expected to cost around $30k, Nissan is almost ready to bring the new Leaf to customers at an affordable price, and Kia is working on a $30k electric SUV of its own, but even without EVs in the conversation, a mid-$20,000 MSRP puts the Slate truck in the crosshairs of the Ford Maverick, which starts at $28,145 for 2025. By the time Slate begins deliveries, even more rivals will be vying for a piece of the same pie, so this needs to be a compelling product. At over $25,000, is it? We're betting some of our readers put down a deposit, so let us know below if you intend to follow through with the higher pricing if it doesn't swell any further. About the Author Sebastian Cenizo View Profile
The Verge
01-07-2025
- Automotive
- The Verge
Trump says he'll look into deporting Musk as fight over bill escalates
President Donald Trump and Elon Musk's fighting over the 'big, beautiful' domestic policy bill has returned to the spotlight, with the president telling reporters on Tuesday that 'we'll have to take a look' into deporting the billionaire. He also proposed targeting Musk via the Department of Government Efficiency (DOGE), saying, 'We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon.' Musk has been a longtime critic of Trump's budget bill, which he says he opposes because it will increase the budget deficit. However, a proposed removal of EV tax credits that help Tesla, where Musk is CEO, likely plays a role. After the pair traded insults in early June, both had retreated from publicly squabbling, and Musk deleted some of his posts on X — another of his companies — that linked Trump to Jeffrey Epstein, a convicted sex offender. Then, on Monday evening, as the US Senate worked through a 'vote-a-rama' in an attempt to pass the bill, Musk started posting on X again. He reiterated a threat to primary politicians who support the bill and said, 'If this insane spending bill passes, the America Party will be formed the next day.' Trump posted a response on Truth Social, implying that DOGE (which Musk led before publicly stepping down in May) could cut subsidies for Musk's companies. Without those subsidies, Trump said, 'Elon would probably have to close up shop and head back home to South Africa.' Trump's full response, posted on Truth Social: Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one. Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!! Musk responded on X to Trump's comments, saying, 'So tempting to escalate this. So, so tempting. But I will refrain for now.
Car and Driver
01-07-2025
- Automotive
- Car and Driver
Senate Proposal to Budget Bill Would End EV Tax Credit on September 30
The United States Senate is looking to accelerate the expiration of federal EV tax credits with a new provision in the Republican tax and domestic policy bill. A previous Senate bill would have ended the credit 180 days after the bill's passing, with a House version eliminating the bill at the end of the year. If the Senate passes its most recent proposal, federal EV tax credits will expire on September 30, 2025. Senate Republicans are hoping to expedite the expiration of federal EV tax credits with a new provision that would sunset the program on September 30, 2025. The provision is part of the major tax and policy bill being pushed through the United States Senate right now. A House version of the bill would have eliminated the credit at the end of 2025, while a previous version of the Senate bill would have terminated the $7500 credit 180 days after the bill's passage. The original wording of the Inflation Reduction Act would have terminated the credit at the end of 2032. The accelerated timeline is in direct contrast to automakers and dealers, with the National Automobile Dealers Association telling Automotive News that it urged Congress to give retailers more time before removing incentives. "Dealers are still carrying a high EV inventory with approximately 140,000 EVs currently on dealer lots. If EV tax credits are going to be repealed, NADA urges Congress to include a reasonable transition period," the group said. Along with ending the $7500 tax, the proposed legislation would remove the $3750 credit available for plug-in hybrids. The updated bill would also eliminate the $4000 credit available for used EVs and PHEVs. Following votes on the proposed provisions, the Senate is expected to take a final vote on the budget bill today. If the revised bill passes the Senate, it must make a second passage through the House before the president can sign it into law. Jack Fitzgerald Associate News Editor Jack Fitzgerald's love for cars stems from his as yet unshakable addiction to Formula 1. After a brief stint as a detailer for a local dealership group in college, he knew he needed a more permanent way to drive all the new cars he couldn't afford and decided to pursue a career in auto writing. By hounding his college professors at the University of Wisconsin-Milwaukee, he was able to travel Wisconsin seeking out stories in the auto world before landing his dream job at Car and Driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf. Read full bio
