EV maker Rivian says its current models will not qualify for tax breaks
FOX Business Flash top headlines for August 11
Check out what’s clicking on FoxBusiness.com.
Electric-vehicle maker Rivian Automotive Inc on Thursday forecast a wider operating loss for the year and also said many of its current models will not qualify for new federal tax incentives.
Shares dropped more than 2% in after-hours trade.
|RIVN||RIVIAN AUTOMOTIVE INC.||38.95||+1.55||+4.14%|
The young company observed that its R1 series of premium pickups and SUVs is not likely to benefit from tax incentives in the new energy and climate bill passed by the U.S. Senate.
RIVIAN ELECTRIC TRUCK RESERVATIONS INCREASING DESPITE PRICE HIKES AND PRODUCTION DELAYS
But Rivian could qualify for subsidies of up to $40,000 per vehicle for large electric commercial vans similar to the ones it is building for Amazon.com Inc, Chief Executive R.J. Scaringe told analysts on a conference call after the release of quarterly earnings.
Scaringe said Rivian's smaller, less expensive R2 line of consumer vehicles, due out in 2025, should also qualify for tax credits because those will have a domestic battery supply chain.
Rivian said it now expects to post an adjusted loss before interest, taxes, depreciation and amortization of $5.45 billion, compared with a previously projected loss of $4.75 billion.
Still, Rivian built fewer than 7,000 vehicles in the first half, but reaffirmed its full-year target of 25,000.
The Irvine, California-based company said it plans to add a shift to its Normal, Illinois, assembly plant by the end of the third quarter, but also noted it expects higher raw material costs and other supply-chain challenges to continue.