RJ Scaringe, the CEO of EV maker Rivian (RIVN), recently said that he’s shocked by the U.S. auto industry’s recent shift back toward gas-powered vehicles. Indeed, on the InsideEVs podcast, he said it “blows his mind” that companies are moving money away from electric vehicle development. Scaringe pointed to General Motors’ (GM) $4 billion investment in building gas-powered cars and to the U.S. government’s cuts to key EV programs, such as tax credits. As a result, he believes that this shift will reduce competition in the EV space and give companies like Rivian and Tesla (TSLA) an unexpected advantage.
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He also stated that this redirection of investment is bad for the environment and the future of the auto industry. Notably, just a few years ago, major automakers promised to phase out gas cars. Now, those plans are stalling as U.S. EV sales slow down. Furthermore, President Trump has rolled back federal EV incentives and blocked California’s plan to phase out gas engines. Scaringe warned that fewer EV competitors could lead to a market dominated by just a few players, which is something he says isn’t healthy for long-term growth.
However, it is worth noting that EV sales are still growing in countries like China, where companies like BYD (BYDDF) are leading the way. Scaringe thinks that the problem in the U.S. is a lack of strong EV options for buyers. In fact, EVs currently account for just 8% of new car sales in the U.S., and he says that number won’t rise unless buyers have more options. And while Rivian could benefit from less competition, Scaringe stressed that a thriving, competitive EV market is what’s best for everyone.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, 14 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $13.79 per share implies 4.4% upside potential.
