EV Tax Credit

[jambaman84]

So Rivian has stated that the R2 will qualify for the full 7500 tax credit (point of purchase credit). This means the battery will come from either USA or a country that is in good standing with USA.

So my question is, if this is the case, why can't they use that battery on the R1, and that can also qualify for the full 7500 tax credit? Has Rivian mentioned that the R1 will also qualify once the Georgia plant is up and running?

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[CharonPDX]

It's almost certainly a different design of battery, so they can't just share batteries between R1 and R2. Could also be contractual - maybe their battery source contracts require they use their current supplier until 2025 or something. Or just cost - maybe their existing contract has such good pricing that switching batteries for R1 would mean renegotiating a contract that would end up far worse.

 

[Billyt1963]

I think the biggest hurdle for the R1 is the suggested MSRP of $80,000. I know there are a couple that meet that, so I am not sure why they can’t have the full credit.

 

[Electrified Outdoors]

If I understand correctly the problem is where the battery materials are sourced. Pretty sure they are Samsung cells so it's a supplier issue for Rivian. Tesla has its own battery factory and a partnership with Panasonic... More control over the process and where the materials are sourced.

I suspect Rivian has to rely completely on its supplier. Like you say if they already agreed on a price not likely the supplier will make any changes unless it brings down costs for them. It's something they would have to renegotiate.

Also, it's a lot of work for what amounts to not very many units since most are well above the 80k cut off. Those buyers also tend to be less price sensitive.

R2 is a totally different buyer who will be more price sensitive. Also, there likely will not be any R2 configs that come in above 80k limit.

 

[UnsungZero_OldTimeAdMan]

So my question is, if this is the case, why can't they use that battery on the R1, and that can also qualify for the full 7500 tax credit? Has Rivian mentioned that the R1 will also qualify once the Georgia plant is up and running?

They can. It's a matter of business negotiations and of course... price.

 

[St Bernard]

So Rivian has stated that the R2 will qualify for the full 7500 tax credit (point of purchase credit). This means the battery will come from either USA or a country that is in good standing with USA.

So my question is, if this is the case, why can't they use that battery on the R1, and that can also qualify for the full 7500 tax credit? Has Rivian mentioned that the R1 will also qualify once the Georgia plant is up and running?

While RIVIAN is saying the R2 will qualify for the $7500 tax credit, there is no guarantee that the credit will still exist in 2026. Trump clearly does not like Electric cars (among other things he thinks they only can run for 15 minutes) and giving owners a large credit may disappear.

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