Photo: RJ Scaringe on Twitter
The new EV tax credit bill passed the Senate, and buyers of all-electric cars or trucks are anxiously waiting to see what’s going on with the $7,500 they thought they would get. Rivian’s CEO is now being messaged by hundreds of preorder holders. They want to sign! Here’s why and what’s going on.
The Senate unsurprisingly passed the updated EV tax credit bill. This will very soon change a couple of things. One of the modifications brought by this act is that automakers like Rivian or Lucid won’t have any more $7,500 tax credits to give. Under the new provisions, their vehicles in the current configuration wouldn’t be eligible any longer.
However, the bill must now be passed by the House of Representatives and signed into law by Joe Biden. There’s still time to make some decisions regarding what electric car companies can do for their pre-older holders that want to receive the $7,500. Fisker, for example, acted immediately and notified its customers that their deposits will be transformed into non-refundable payments. This would offer anyone interested the chance to become a party with a “written binding document to purchase,” meaning the buyers could eventually get their $7,500 in 2022 to be used for the 2023 tax filings.
Now Rivian preorder holders are asking for the same thing. The company’s CEO, RJ Scaring, has already received hundreds of emails from prospective buyers, and the automaker should decide on the matter soon enough.
“As I’m sure you are aware, the “Transition Rule” in the passed legislation allows for anyone with a “written binding agreement” in place before the President signs the bill to have the option to utilize the existing credit. Your preorder holders have (mostly) patiently borne the delays that are inherent with a startup car manufacturer. But these delays are now putting us in a position where many of us may not be able to go through with our purchases in absence of the $7,500 tax credit,” reads the document sent to Rivian’s CEO.
However, not everyone agrees with this strategy. A Rivian R1T pickup truck now costs $67,500, while the R1S SUV starts from $72,500. Some customers think this letter is just a polite way of “asking for handout money.” They argue that someone looking to buy such an expensive vehicle shouldn’t worry about a tax credit.
Finally, Rivian might eventually want to do this for its preorder holders, but it wouldn’t be able to deliver – or survive. Locking in via buyer’s agreements hundreds or even thousands of low-priced orders that were made before the parts sourcing issues and inflation started to make a dent in the company’s financial plans would most likely be devastating.
However, the bill must now be passed by the House of Representatives and signed into law by Joe Biden. There’s still time to make some decisions regarding what electric car companies can do for their pre-older holders that want to receive the $7,500. Fisker, for example, acted immediately and notified its customers that their deposits will be transformed into non-refundable payments. This would offer anyone interested the chance to become a party with a “written binding document to purchase,” meaning the buyers could eventually get their $7,500 in 2022 to be used for the 2023 tax filings.
Now Rivian preorder holders are asking for the same thing. The company’s CEO, RJ Scaring, has already received hundreds of emails from prospective buyers, and the automaker should decide on the matter soon enough.
“As I’m sure you are aware, the “Transition Rule” in the passed legislation allows for anyone with a “written binding agreement” in place before the President signs the bill to have the option to utilize the existing credit. Your preorder holders have (mostly) patiently borne the delays that are inherent with a startup car manufacturer. But these delays are now putting us in a position where many of us may not be able to go through with our purchases in absence of the $7,500 tax credit,” reads the document sent to Rivian’s CEO.
However, not everyone agrees with this strategy. A Rivian R1T pickup truck now costs $67,500, while the R1S SUV starts from $72,500. Some customers think this letter is just a polite way of “asking for handout money.” They argue that someone looking to buy such an expensive vehicle shouldn’t worry about a tax credit.
Finally, Rivian might eventually want to do this for its preorder holders, but it wouldn’t be able to deliver – or survive. Locking in via buyer’s agreements hundreds or even thousands of low-priced orders that were made before the parts sourcing issues and inflation started to make a dent in the company’s financial plans would most likely be devastating.
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