The Trump administration is dismantling the EV regulatory credits system, affecting Tesla, Rivian, and Lucid negatively. These companies earn revenue by selling credits to automakers who fail to meet environmental regulations. Rivian's court filing revealed that over $100 million in revenue is now uncertain. Lucid expressed concerns about decreased market value of regulatory credits that are key to its revenue. Tesla also indicated a $1.11 billion drop in expected revenue due to these changes, which could profoundly affect future earnings.
Tesla, Rivian, and Lucid have all warned that the end of the regulatory credits system could significantly impact their profits, putting over $100 million in revenue in limbo for Rivian alone.
The Trump administration's overhaul of EV regulations poses a serious financial risk; Tesla reported a $1.11 billion decrease in expected revenue due to the repeal of federal credit schemes.
Regulatory credits have been lucrative for Tesla, Rivian, and Lucid, but changes in policy now threaten the market value of these credits significantly, directly impacting their revenue.
With all three companies producing only electric vehicles, their sales of regulatory credits have provided pure profit, contributing to significant revenue streams, which are now in jeopardy.
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