Rivian (RIVN) unfazed by Trump EV policy changes, but warns it could spell trouble for others

Electric vehicles are “not a political thing,” according to Rivian’s (RIVN) CEO RJ Scaringe. Although the Trump administration is expected to scale back EV incentives, including the $7,500 federal tax credit, Rivian believes it’s still in a better position than most. Scaringe warned that the changes could spell trouble for some legacy automakers.

Rivian charges ahead despite Trump EV policy changes

As it preps to launch its more affordable R2, Rivian expects policy changes to be “small speed bumps” along the way. And in the end, Scaringe said, “The future of transportation will be electric” either way.

At the opening of its new showroom in San Francisco last week, Rivian’s CEO and founder reiterated that the company’s plans are not changing, even with the threat of changing EV policies in the US.

“I started the company with the view of making highly compelling products, and none of my decision to start Rivian had anything to do with what the policy was going to look like,” Scaringe told visitors at the event (via Automotive News).

As he explained, any changes “will be equally applied to all,” so Rivian is not particularly worried about them. Like many, He expects the $7,500 federal EV tax credit and tax credits for battery production to be repealed.

Although the policy changes would likely set the US behind China and others in the broader auto industry, Scaringe said the long-term trend toward EVs is unstoppable. Scaringe warned that the US leadership in the future of automotive tech is at risk.

This is not a political thing. It’s not like the left wants to move to electrification. It’s that the future of transportation will be electric.

Less than two weeks ago, Rivian closed its loan agreement with the US Department of Energy (DOE) for up to $6.6 billion in financing for its second EV manufacturing plant.

The next growth stage

The plant, located just east of Atlanta, Georgia, will be home to Rivian’s smaller, more affordable R2 SUV and R3 crossover. Rivian’s upcoming EVs will be “critical drivers in the company’s long-term growth and profitability.”

Starting at around $45,000, Rivian’s R2 will be nearly half the cost of the current R1S and R1T. Rivian will initially start building R2 models at its Normal, IL facility in early 2026 before moving it over to Georgia. Rivian’s plant in GA is expected to be up and running in 2028 with the capacity to build 400,000 vehicles annually.

Rivian produced 49,476 vehicles in Normal last year, with over 51,500 deliveries. After launching the R2 in 2026, the EV maker expects to rapidly scale up, with up to 615,000 annual vehicle production capacity between its two manufacturing plants.

Trump rolling back EV incentives would likely result in more delays from legacy automakers, which could benefit Rivian.

“The challenge with some of these short-term changes, for the world and for the U.S. leadership in technology, is that it will cause some manufacturers to invest less in electrification,” Scaringe said.

Although that’s “probably good for Rivian from a competitive landscape,” Scaringe added, it’s “bad for the world.” It could cause legacy car makers like Ford and Toyota, which have already doubled down on hybrids, to invest more in inferior powertrain technology as they seek to maximize short-term profits.

Rivian’s boss thinks it’s “a big miscalculation for the long term” for legacy automakers to focus strictly on profits in the next two to three years.

Scaringe shared a few other insights at the Rivian Space opening in San Fransico last week. After launching a new EV and software joint venture with Volkswagen, Scaringe said, “OEMs are knocking on our door” for technology.

He also said Rivian plans to launch hands-free driving this year, followed by an “eyes-free” system in 2026 as it dives deeper into software and ADAS.