- Rivian Automotive (NASDAQ: RIVN) has achieved consecutive quarters of positive gross margins and plans to begin production of three new vehicles under $50,000 next year, expanding their potential buyer base.
- However, a new budget bill signed into law by President Donald Trump will phase out EV tax credits by 2025, impacting the profitability of EV manufacturers like Rivian.
- Rivian generated $325 million in revenue from the sale of automotive regulatory credits in 2024, a significant profit source that may be eliminated due to changes in the regulatory environment.
- Despite these challenges, Rivian remains a promising long-term growth stock, with lower expectations and potential for continued profitability even without federal regulatory credits.
Read more at Nasdaq: Prediction: Rivian Could Lose This $325 Million Revenue Source That Is Nearly 100% Profit