Rivian, the electric vehicle (EV) manufacturer, is considering introducing leasing options for its vehicles and expanding its electric lineup. This move comes as the company aims to benefit from the full $7,500 Inflation Reduction Act (IRA) tax credit for lease deals.
RJ Scaringe, the CEO and founder of Rivian, explained during a conference that the company initially chose not to offer leasing options because it believed its R1S and R1T EVs would have strong residual values. However, this led to some owners selling their vehicles after just one month to profit from the high demand, resulting in higher prices for slightly used Rivian vehicles.
Now, Rivian plans to introduce leasing options, although the timeline for this change has not been confirmed. Scaringe stated that unlocking leasing is valuable for the company and that Rivian’s strong residual values will lead to competitive leasing packages.
Additionally, offering leasing will allow customers to take advantage of the full $7,500 IRA tax credit, as opposed to the partial $3,750 credit available for R1T and R1S purchases with an MSRP under $80,000.
During the conference, Scaringe expressed optimism about Rivian’s upcoming R2 platform, which will serve as the foundation for a range of smaller electric vehicles. These vehicles will be produced at a new factory in Georgia. Scaringe also mentioned that the grading process for the new factory is nearly complete, and construction is expected to begin early next year.