Locator: 48863RIVIAN.
From The Wall Street Journal. Link here.
From the linked article:
Electric truck maker Rivian says the rollback of fuel economy rules in the U.S. is holding up $100 million of revenue, a sign of how changes to automotive policy under the Trump administration are starting to hurt the electric-vehicle industry.
Rivian and its rivals have generated hundreds of millions of dollars in revenue selling credits tied to the nation’s fuel economy rules. But after the Trump administration removed penalties for violating those standards, the nation’s top automotive regulator stopped issuing paperwork necessary to finalize those credits, leaving EV makers in the lurch.
The National Highway Traffic Safety Administration said the change was part of moves to overturn Biden-era EV rules and address Corporate Average Fuel Economy standards, known as CAFE. “NHTSA is focusing on fixing CAFE standards to make cars more affordable again,” a NHTSA spokesperson said. “When that process is complete, we will return to issuing compliance letters to manufacturers.”
Last week, the Zero Emission Transportation Association, an EV trade group, filed a petition to the U.S. Court of Appeals in Washington, D.C., asking the court to intercede. The group wants to force NHTSA to resume issuing the so-called compliance letters—certifications that show how much each automaker complies with or violates the nation’s fuel economy rules. ZETA declined to comment.
The dispute highlights a lesser-known part of the U.S. auto industry: The buying and selling of so-called regulatory credits. Revenue from these credits has been a reliable stream for EV makers and a hefty expense for legacy carmakers whose fleets contain gas-guzzling pickups and SUVs.
Credit trading is a common practice used by governments to get industries to comply with environmental regulations, according to financial analysts and environmental organizations. Carmakers whose vehicles exceed gas-mileage rules can generate credits and sell those to competitors who are in violation of the rules, helping offset any fines they may face.
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