US Treasury: Rivian, VW, Nissan, others lose full $7,500 EV tax credit, Tesla base Model 3 cut in half
Following its delayed but long-anticipated battery guidance pertaining to federal EV tax credits, the US Treasury Department’s requirements are about to kick in, and it’s not great news for all prospective EV buyers. Beginning tomorrow, EVs from major automakers like Volkswagen, Rivian, BMW, and more will no longer qualify for any tax credits at the federal level, while Tesla’s base Model 3 is cut in half.
Following a nearly four-month delay, the US Treasury Department shared its guidance earlier this month, outlining what parameters automakers must comply with in terms of battery component assembly and respective materials in order for their EVs to qualify for federal tax credits.
Beginning April 18, EV manufacturers must ensure that battery-critical minerals used in vehicles assembled in North America are also “extracted or processed in the US or any country with which the US has a free trade agreement” or recycled in North America. Like the EV themselves, battery components must also be “manufactured or assembled in North America.”
Each of the two newly enforced qualifying factors account for $3,750 in EV tax credits, combining for the total $7,500. Even before the battery guidance was revealed, several global automakers began scrambling to erect or repurpose US manufacturing facilities to enable local EV production.
Some of those automakers (like Rivian, for instance) are already American-made, while others, like Volkswagen, have had local plants for years. In that sense, we thought it was safe to assume those automaker’s EVs would continue to qualify for federal tax credits.
However, according to the US government, a slew of previously qualifying EVs are about to be cut (at least for now) because of the battery guidance going into effect. Here’s the latest.
Battery guidance puts huge hit on EV tax credits in US
We’ve been aware of the battery guidance from the US Treasury for a few weeks now and have known those requirements will take effect on April 18. However, automakers aren’t generally super open about how and where they source all their materials, so it remained unclear which EVs may or may not still qualify for the tax credit.
Some automakers like GM, for example, have come out publicly and shared that all their EVs will still qualify for the full $7,500 EV tax credit. Others have remained quiet, leaving us guessing. Today, the government has made things a lot clearer… and more disheartening for those consumers looking to purchase a new Rivian or Nissan LEAF with hopes of getting a $7,500 kickback.
This morning, the US Treasury stated the following models will lose their EV tax credit status beginning tomorrow. Here’s the latest wave of EVs being cut:
- Audi (VW Group)
- BMW
- Genesis (Hyundai Motor Group)
- Rivian
- Volkswagen
- Volvo
Additionally, the US government states that the Standard Range RWD Tesla Model 3 will now only qualify for up to $3,750 in federal EV tax credits. Other trims of the Model 3 and the Tesla Model Y will still qualify for up to the full $7,500 EV tax credit.
Now that they have been cut, that isn’t to say those EVs can’t once again qualify for federal EV tax credits. Volkswagen Group has already come out and said it is “fairly optimistic” that the ID.4 will qualify. The automaker is merely awaiting the proper documentation from a supplier.
Additional automakers like Stellantis expect their electric models to qualify for at least half of the tax credit, and the Treasury has confirmed as much.
Hyundai Motor Group expressed commitment to long term EV plans as it is currently constructing a new US production facility to eventually produce vehicles that will once again qualify for EV tax credits.
This story is ongoing and the list of qualifying EVs should continue to evolve in the coming weeks as the battery guidance kicks in and automakers submit the necessary paperwork (or not) to try and requalify. As always, we will continue to keep this list up to date for you.
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The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.
The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.
A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.
McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”
“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.
In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.
Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.
In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.
WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal
Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.
Rivian R1S and R1T upgrade deal offers up to $6,000
Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.
After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.
Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.
With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.
Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:
- Tri with Max battery: $6,000 USD / CAD 8,600
- Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
- Dual with Max battery: $3,000 USD / CAD 4,300
The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.
After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”
Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.
The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.
Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.
Electrek’s Take
Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.
Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.
Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.
Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.
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