From Yahoo Finance: 2025-06-29 07:15:00

Rivian Automotive (NASDAQ: RIVN) is expected to see sales grow by over 40% next year, driven by the introduction of three new models priced under $50,000. However, the lack of affordable mass-market models could pose a risk to the company’s future.

Federal EV tax credits, which can amount to $7,500, play a key role in boosting demand for EVs by lowering consumer prices. Most Americans look to spend less than $50,000 on their next vehicle, making these tax credits crucial for the industry.

President Trump and Republicans are considering eliminating federal tax credits for EVs, a move that could slow Rivian’s growth. Germany’s experience of ending EV incentives in 2023 resulted in a 27.4% decline in EV sales the following year.

Surveys reveal that EV buyers prioritize affordability. The removal of federal tax credits may hinder Rivian’s expansion. Investors in EV stocks like Rivian should closely monitor political risks, as Germany’s example demonstrates the impact of such changes on EV sales.

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Read more at Yahoo Finance: 1 Thing Every Rivian Investor Needs to Watch Right Now