Leasing an R1T or R1S will unlock the full EV tax credit: Rivian CEO
Rivian is one of the latest companies to join the automotive industry. Like Tesla, it only makes electric vehicles. The R1T pickup truck and R1S SUV are great vehicles. They’ve proven their worth in numerous tests, and customer feedback has been impressive, especially after the recent update. But the brand story doesn’t stop here. Here’s what’s on the CEO’s mind.
Image: RJ Scaring on Twitter / Edited
Today, purchasing Rivian isn’t something only early adopters might consider. The brand has proven that it is serious about success. I’ve discovered how to increase production while making minor changes and adjustments along the way. The R1T and R1S have been tried and tested by professionals, journalists and customers. Most great feedback returned.
Additionally, EDV and accompanying software are helping e-commerce giant Amazon reduce its carbon footprint by replacing its delivery trucks with all-electric ones manufactured in Normal, Illinois.
Rivian is still unprofitable, but its CFO recently said revenue could beat spending and sell cars at a loss by the end of 2024.
The dual drive reduces production costs by about 25% for the minivan and SUVsand the young brand is moving forward in convincing people that internal Enduro power units are capable enough for almost everything they might want to do.
Everything looks good for Rivian now. But there are still some things that can be improved. the Eve The tax credit is one of them.
As I write, only the dual motor + big package R1T realistically qualifies for the EV tax credit. It has an MSRP of $79,000. The R1S will get the federal feature as well, but only if it’s paired with the smaller standard battery pack, which isn’t yet in production.
Additionally, the R1T only gets half the $7,500 given to qualifying Americans who purchase a zero-emissions vehicle. The car is assembled in the United States, but the battery does not contain at least 40% of the critical minerals mined or processed in North America or in a country with which the United States has a free trade agreement. But this has to change soon.
At writing, Rivian buyers have two options – payment in full or financing. Some Americans and Canadians did so and sold their electric cars shortly after receiving them. This upset the automaker’s CEO, Rivian Scarring. He doesn’t like customers selling their R1 series electric cars for profit.
Photo: Electric Riveter on Facebook
Leasing (also known as long-term leasing) is a great solution that solves both problems – the customer gets the EV tax credit and has a lower monthly payment. At the same time, the CEO won’t have to see as many R1Ts or R1S units on different car sales platforms. In a conversation with Morgan Stanley, the executive said this option would be coming soon.
However, getting the full EV tax credit depends on the automaker. The company must pass it on to the customer. Ford or Hyundai, for example, don’t do that. The CEO noted that the rates will be attractive, so we expect the federal advantage will not be withheld.
Scaringe also said he’s optimistic about how Rivian will continue to grow and is particularly confident in the long-awaited R2 series. Until now, the smaller EV line of affordable cars has been envisioned exactly as a little sibling to the R1S. But Rivian may offer a competitor to the likes of the Ford Maverick.
Rivian follows Tesla’s playbook and designs its own electronic control modules that give it complete control over the entire system. It can design, test, analyze and upgrade everything without relying on an external partner.
Finally, the CEO said that the grading process on its next plant in Georgia has already been completed, and actual construction should begin next year. This is where the brand plans to start manufacturing the R2 series electric cars which should also reach people living over the pond.
All the good news surrounding the Irvine-based automaker may encourage shareholders to continue investing in Rivian as it shapes up to become a smaller Tesla.
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