Official email from Rivian offering Binding Purchase Agreement

[Gsxr150]

And now everyone is upset about it.....

Makes me sad...i thought this was a tight community of everyday folks. Makes us look like a bunch of pretentious, self-centered, all about me, Tesla drivers. We want want want...

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[Friscorays]

And now everyone is upset about it.....

I'm actually quite pleased about it.

 

[ads75]

I'm actually quite pleased about it.

I think most rare but It’s impossible to please everybody. Some people seem to think Rivian is also legally obligated to deliver pre-March 1 pricing also.

You can lead a horse to water but you can’t make it drink.

 

[LoneStar]

I just wonder did they consult ANY kind of EV battery industry experts before crafting the domestic content provisions. May well have unintentionally blocked out about 90% of the current offerings sold in USA

 

[emoore]

I just wonder did they consult ANY kind of EV battery industry experts before crafting the domestic content provisions. May well have unintentionally blocked out about 90% of the current offerings sold in USA

Not sure they cared. Want to get mr West Virginia on board and he doesn’t like EV credits.

 

[Evonly Indishous]

Welp, Joe Manchin forced my hand and I went ahead and put down a reservation/deposit on a R1S.

 

[Husker Charlie]

I just wonder did they consult ANY kind of EV battery industry experts before crafting the domestic content provisions. May well have unintentionally blocked out about 90% of the current offerings sold in USA

Not sure they cared. Want to get mr West Virginia on board and he doesn’t like EV credits.

Exactly. It wasn't unintentional at all. The limitations were the price for Manchin's support. He's beholden to fossil fuels.

 

[zipzag]

Exactly. It wasn't unintentional at all. The limitations were the price for Manchin's support. He's beholden to fossil fuels.

So they write a bill primarily benefiting Tesla and Ford, which are doing great and will capture the buyer's tax credit with high prices.

I do hope that some parts of the bill are actually beneficial

 

[GrokTime]

On the other hand, if car maker that makes a reasonably priced EV with enough domestic parts it will benefit greatly from the new legislation for years to come.

 

[jollyroger]

The bill is probably really good long term, but I can see this stopping EV adoption for the next few years while the supply chains get modified, so companies like Rivian have potential customers that are waiting for the truck to be eligible for the tax credit, all the while Rivian has to burn money to get to that point.

Get ready for the next earnings report to talk about how they had to spend 2.5 billion to modify the supply chain to be eligible for the credit.

I guess our only hope is the binding contract (hopefully works), or there are some waivers added when this goes into effect as mentioned before.

 

[Sully151]

Only a ver small part of this Bill is about EV Tax Credits. Sure, it’s important to us, but we are a tiny part of the population. There were bigger fish to fry, so tax credits were thrown back into the water.

If anything, this should push Rivian to get R2 out sooner and to make sure it will qualify for the tax credit. This is where Rivian will make its mark.

 

[brancky3]

The bill is probably really good long term, but I can see this stopping EV adoption for the next few years while the supply chains get modified, so companies like Rivian have potential customers that are waiting for the truck to be eligible for the tax credit, all the while Rivian has to burn money to get to that point.

Get ready for the next earnings report to talk about how they had to spend 2.5 billion to modify the supply chain to be eligible for the credit.

I guess our only hope is the binding contract (hopefully works), or there are some waivers added when this goes into effect as mentioned before.

I think the best thing about this new credit is that it's going to give benefit to manufacturers that start building 'average Joe' EVs instead of $100k supercars. Don't get me wrong, I love luxurious and fast vehicles, but it seems like 95% of the population can't afford an EV right now.. Average EV price right now in the US is $66k while the median household income is $67k. We really need to see average EV price drop down to match the average new vehicle price of ~$47k to drive adoption en masse.

 

[TexasBob]

I think the best thing about this new credit is that it's going to give benefit to manufacturers that start building 'average Joe' EVs instead of $100k supercars. Don't get me wrong, I love luxurious and fast vehicles, but it seems like 95% of the population can't afford an EV right now.. Average EV price right now in the US is $66k while the median household income is $67k. We really need to see average EV price drop down to match the average new vehicle price of ~$47k to drive adoption en masse.

I very much doubt it will do what it is intended. In fact I would guess that the main thing the price caps will do is accelerate the shift subscription-based vehicle pricing. It is easy to simply move to a VinFast-style battery leasing program and get prices below any cap or even drop the price of an R1S to $75 k and software limit the battery to 180 miles. Then offer an after-market upgrade OTA.

Two often overlooked points to share:
1) The new vehicle market is less than 25% of the US vehicle market - the top 1/3 in wealth buy nearly all the new vehicles. Literally 3/4s of vehicles are purchased used. So new vehicles are not, and never will be, priced to the average income.
2) Putting a high-end EV on the market today benefits mid and lower income buyers down the road and accelerates EV production. (A 2015 Range Rover is now under $40k! It will have three more owners before it leaves the fleet.)

 

[McMoo]

Exactly. It wasn't unintentional at all. The limitations were the price for Manchin's support. He's beholden to fossil fuels.

And The White House will ignore the facts with posts like this.

 

[srh]

Apologies if this was covered in the thread since I don't feel like reading through 20+ pages, but I specifically asked Rivian if they qualified for the upcoming IRA battery source requirements. Below is their response via email. I read that as yes they do even though all the media has been saying they don't. I also read this as signing the binding agreement doesn't necessarily lock you into the old tax credit if you don't want it to, but I could be misinterpreting that portion.

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