There May Be a Price War Coming for Electric Vehicles. Here's Why Rivian Can Win It.
Consumers hoping to receive a $7,500 federal electric vehicle (EV) tax credit on a (NASDAQ: TSLA) Model 3 next year could end up with a lump of coal instead. But the ripple effect of this change and what it could mean for competitors such as Rivian Automotive (NASDAQ: RIVN) could be much more impactful than investors realize.
Specifically, Tesla's most affordable vehicle will no longer qualify for the $7,500 federal EV tax credit after the calendar flips to 2024, when stricter rules on battery sourcing will take effect. The loss of the tax credit will apply to most Model 3 trims. However, the performance trim level will still be eligible, according to Tesla.
Source Fool.com