Rivian now selling pollution indulgences

[NineElectrics]

“Rivian’s second-quarter revenue included $34 million from the sale of regulatory credits.”

I am not pleased to read this. This means that the Rivian you and I bought had no net environmental benefit; the purchase just enabled some other automaker to pollute more. You neighbor bought their pig SUV ICE thanks to you.

I hate enabling this. And all for chump change. Rivian’s mission statement is in tatters.

The good news is that if you were on the fence about buying some gas guzzler, you can feel better: the Rivian and that gas guzzler pollute exactly the same now. So, go ahead and pull the trigger.

Kudos to governments for enacting the emissions credit system in the first place, though. That effort does curb emissions. Rivian, on the other hand, does not help. If Rivian didn’t exist, the net pollution would be exactly the same, because other automakers would have had to reduce their emissions via other means. But now, thanks to Rivian, they can buy their way out of change, and Rivian becomes environmentally irrelevant.

Please, Rivian, don’t sell any more credits. Sit on them instead, and the planet will die a little less slowly. Make yourself part of the solution.

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[Donald Stanfield]

So the system is good, but anyone who sells credits is doing a bad thing. Seems suspect but okay.

 

[COdogman]

I understand why you might see it that way. It’s not wrong. But I don’t fault Rivian for playing the carbon credit game. They didn’t choose that as the model and market for corporate America. That scheme was dumb to begin with.

Especially at this early stage I think Rivian should do what they need to do to stay alive and keep putting out vehicles that don’t emit pollution and don’t stop at gas stations. That makes a huge difference.

 

[SASSquatch]

To the OPs point though, RJ is running around accusing the industry of "greenwashing" and then Rivian turns around and sells credits enabling exactly that very greenwashing.

$34M isn't going to buy RJ a new factory in Georgia, but it will smack of serious hypocrisy.

I'm pro Rivian, and pro RJ - I really like this dude even though he's holding hostage any information on a tonneau redesign - but this is not a good look.

 

[JWreck]

To the OPs point though, RJ is running around accusing the industry of "greenwashing" and then Rivian turns around and sells credits enabling exactly that very greenwashing.

$34M isn't going to buy RJ a new factory in Georgia, but it will smack of serious hypocrisy.

I'm pro Rivian, and pro RJ - I really like this dude even though he's holding hostage any information on a tonneau redesign - but this is not a good look.

Oh to be public and beholden to shareholders who don’t give a shit about the environment. ?

 

[fhteagle]

ICE gets more expensive because they have to pay for credits. EVs get cheaper and/or increase production faster due to the pay in. System does what it's designed to do. Your claim that Rivians now pollute as much as ICE is a specious conclusion. Agreed it's all accounting tricks and parlor games in the end, but hating on Rivian is not going to fix that.

At least we have a different option than to continue the fossil fuel Faustian bargain. Clean energy
[edit for clarity: _can_be_] cheaper to build than fossil is to buy fuel for. The market has lag, but the laws of economics will trump badly written laws of legislature and fast.

 

[Grabs10]

If they didn’t allow the credit scheme where manufactures get the money the Government would collect fines for fuel economy violations which would mean they could buy more military non emission tanks, heavy trucks and stuff which they then could distribute them around the World and would likely add more emissions from the fuel economy fines.

Would much rather have manufactures like Rivian and Tesla benefit from other manufacture piss poor fuel economy then the US government. Rivian and Tesla will better use the money towards reducing emissions then the US government which is likely the largest polluter the world has known.

 

[RabidRat]

the fossil fuel Faustian bargain.

Wow.

 

[DaveA]

We all want to drive electric cuz it’s a better driving experience…the planet isn’t going to be saved. It’s a nice thought but…even moving 100% personal transport to electric…not gonna have much of an effect…maybe 15% with current models I’ve seen…You need shipping and airline travel and big rig over the road shipping to go electric… and oil refineries to just stop to really do anything about global warming. It’s sad…

 

[tottaway22]

ICE gets more expensive because they have to pay for credits. EVs get cheaper and/or increase production faster due to the pay in. System does what it's designed to do. Your claim that Rivians now pollute as much as ICE is a specious conclusion. Agreed it's all accounting tricks and parlor games in the end, but hating on Rivian is not going to fix that.

At least we have a different option than to continue the fossil fuel Faustian bargain. Clean energy is cheaper to build than fossil is to buy fuel for. The market has lag, but the laws of economics will trump badly written laws of legislature and fast.

The california power grid and market would beg to differ with your cheaper thought. Along with the new Lazard LCOE

 

[fhteagle]

Along with the new Lazard LCOE

I will let Lazard speak for itself.

 

[Thedude]

If you truly care about environmental issues enough to worry about a regulatory credit sale you have no business buying a luxury EV that generates far more pollution than the cheap 15 year old budget vehicle that would get you were you need to be just as well.

 

[dleepnw]

everyones hands are dirty EV, ICE or otherwise, at all sorts of layers, even before this selloff. and sad to say but Rivian is a public company which needs to answer to shareholders and be profitable. thats what this is ultimately about: $

 

[SANZC02]

Rivian is kind of doing a 2for1 here. They get the credits by building the EV, sell the credits to help pay for clean energy credits like they have done in Tennessee, seems like this could help them grow the clean energy.

Seems wasteful to me for them to not use that those credits to further their cause.

 

[Guy]

If they didn’t allow the credit scheme where manufactures get the money the Government would collect fines for fuel economy violations which would mean they could buy more military non emission tanks, heavy trucks and stuff which they then could distribute them around the World and would likely add more emissions from the fuel economy fines.

Would much rather have manufactures like Rivian and Tesla benefit from other manufacture piss poor fuel economy then the US government. Rivian and Tesla will better use the money towards reducing emissions then the US government which is likely the largest polluter the world has known.

The credit scheme does not stop the US spending what it wants on the military - it is called deficit spending and a large reason why we now have annual trillion dollar deficits.

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