Rivian said a rollback of U.S. fuel economy rules under the Trump administration has left it unable to collect about $100 million in revenue, highlighting the growing impact of policy shifts on electric vehicle makers.
The EV manufacturer and peers such as Tesla and Lucid generate significant income from selling credits tied to Corporate Average Fuel Economy (CAFE) standards. That market has stalled after the National Highway Traffic Safety Administration (NHTSA) stopped issuing compliance letters, following the removal of penalties for automakers failing to meet fuel economy targets.
“NHTSA is focusing on fixing CAFE standards to make cars more affordable again,” a spokesperson for the agency said. “When that process is complete, we will return to issuing compliance letters to manufacturers.”
The Zero Emission Transportation Association (ZETA) has filed a petition in the U.S. Court of Appeals in Washington, D.C., to force NHTSA to resume the process. ZETA declined to comment.
Rivian said regulatory credits accounted for 6.5% of its total revenue in the first half of 2025 and warned it does not expect further sales this year. The company has earned more than $400 million from credits since its 2021 stock market debut. “The company had already negotiated regulatory credit deals but is unable to finalize them,” Christopher Nevers, Rivian’s director of public policy, said in a statement attached to the petition.
Lucid said the halt is also weighing on its business, with an executive noting the credits “represent a significant share” of revenues, though a spokesman added they were not a major income source last quarter. Tesla has been the largest beneficiary of the system, earning more than $12 billion globally since 2008, but recently told investors regulatory changes had reduced expected credit revenue by $1.1 billion.
By contrast, the change has provided relief for traditional automakers. General Motors has spent at least $3.5 billion on credits since 2022, while Ford has committed about $4.3 billion, according to company filings.
The suspension stems from President Trump’s July legislative package, which eliminated penalties for failing to meet fuel economy standards. Days later, NHTSA said it would delay compliance notifications while reviewing CAFE requirements for model years 2022 and beyond.
Biden-era rules would have required an average fleet efficiency of 50.4 miles per gallon by 2031 and increased fines for non-compliance. NHTSA said it will resume issuing compliance letters once the review is complete but did not provide a timeline.
Source: Investing.com
