Where Credit Is Due, DTC EV Makers Looking More Like Their Older Siblings

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It’s a beautiful Tuesday in the car biz as we talk about Dealers banding together to clarify EV credits. We also talk about Rivian and Tesla taking a few pages out of the old school automotive playbook. 

Show Notes with links:

• In an attempt to clarify EV battery sourcing guidelines, the National Automobile Dealers Association and the Alliance for Automotive Innovation are urging the U.S. Treasury to adjust its definition of "placed in service". They argue the current interpretation limits the effectiveness and application of the electric vehicle tax credit. The proposed changes aim to ensure EVs remain eligible for credits, even when they are manufactured in a different calendar year to delivery.
  • The rules could affect EVs that meet battery content requirements for one year but are delivered to buyers in a year with increased requirements.
  • In 2024, batteries manufactured by excluded entities, which could include companies controlled by China will be ineligible
  • In 2025, those with ‘critical minerals’ will also be made ineligible

• In a move that sounds awfully familiar to those of us in the retail auto industry, electric vehicle startup Rivian has launched an in-person shopping event as it directly invites buyers to its factory parking lot to browse, buy, and actually drive vehicles off the lot as it struggles through increased inventory.
  • In what the company is calling the “Rivian Dealership” customers can browse several dozen trucks available for immediate purchase
  • The vehicles on offer at Saturday's sale are the four-motor variants of the R1T pickup, equipped with its biggest battery pack, with starting prices at $87,000. Rivian has no plans to provide discounts at this event, and only trucks will be included, excluding the R1S SUV model that continues to have a waitlist, stated a Rivian spokeswoman.
  • “They don’t want to try the dealer path,” said Stephanie Brinley, the principal auto analyst at S&P Global Mobility. She continues: “They are getting to a point where demand isn’t gone, but electric-vehicle makers are having to work harder for customers,” Brinley said. “You do have to sell vehicles, believe it or not.”

• In a move that appears much more like a traditional OEM, Tesla is providing an $8,000 discount on new Model S and Model X vehicles as well as three years of free Supercharging for deliveries made by the end of the quarter as it seeks to improve end-of-quarter financial outcomes by lowering inventory.
  • Tesla has been known to offer special discounts or incentives for the delivery of new inventory vehicles by the end of the quarter. They recently offered three months of free Supercharging for Model 3 deliveries made by June end.
  • The free charging could be worth several thousand dollars potentially
  • The $8000 discount on it’s Model S and X are o

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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