Rivian CEO RJ Scaringe said a renewed focus on internal combustion engine (ICE) vehicles in the United States could create a thinner competitive landscape for electric vehicle (EV) makers like Rivian and Tesla, even as he warned the trend was a setback for the auto industry and future generations.
Speaking on the “InsideEVs” podcast, Scaringe described what he saw as a “reprioritization of capital towards internal combustion,” calling it “very bad for my kids and their kids, and very bad for the US auto industry.” He noted that new ICE programs and plants are being announced despite automakers having pledged to phase out such vehicles in recent years. “Things I never thought would happen a year ago are happening now,” he said.
The U.S. government has recently moved to roll back EV subsidies, including revoking the federal EV tax credit, while automakers such as General Motors announced new multi-billion-dollar investments in gas-powered vehicle production. Former President Donald Trump has also signed measures to block state-level phaseouts of combustion engines.
Scaringe said the shift could leave fewer competitors in the EV space, which might benefit pure-play manufacturers. “You’re going to have a sort of a vacuum of competition,” he said. “The pure-play EV-focused companies Rivian, Tesla, there’s not very many, because they’re completely and fully focused on electrification, will have the advantage of a pretty thin competitive playing field.”
While that may translate into more market share for Rivian and Tesla, Scaringe cautioned that it is not necessarily good for the industry. He pointed to limited product variety as a factor slowing EV adoption in the U.S. “There’s been so little choice of highly compelling products that we’ve seen adoption stop growing at around 8% new vehicle sales,” he said, adding that broader offerings could draw in more buyers.
EV demand continues to expand in China, where companies such as BYD lead the market, but growth in the U.S. has slowed, leaving uncertainty about the pace of electrification in the years ahead.
