EV Makers Plan Without Federal Tax Credit

Rivian, Lucid and Scout Motors say they are operating without the expired $7,500 incentive as EV sales fall.

Updated on Nov. 15, 2026 in Electric Vehicles

EV Makers Plan Without Federal Tax Credit

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Are you planning to buy an electric vehicle in the next year?

Executives at Rivian, Lucid and Scout Motors said their companies are planning without a return of the federal new clean-vehicle tax credit, which offered buyers up to $7,500 and is unavailable for vehicles acquired after September 30, 2025. Estimated U.S. new-EV sales in September 2026 fell 40.7% from a year earlier.

Why it matters

With no bill, timetable or formal commitment to restore the credit identified, buyers face higher prices and automakers must plan around policy uncertainty. Democrats are expected to gain control of Congress in January 2027, which could shape future incentive decisions.

The average new EV transaction price was $55,879 in September 2026, 11% above comparable internal-combustion vehicles. Estimated Q3 new-EV sales reached 262,649, though this remains well below the prior year's level.

The players

Rivian

Rivian is an American electric vehicle maker known for its R1T pickup and R1S SUV, competing in the growing EV market.

Lucid

Lucid Motors is a California-based electric vehicle manufacturer known for its luxury Air sedan and Gravity SUV.

Scout Motors

Scout Motors is the electric vehicle brand of Volkswagen Group, built to revive the historic Scout name with new electric trucks and SUVs.

The details

Rivian CEO RJ Scaringe said the company does not plan around uncertain policy outcomes and expects the federal credit's impact to be less than the company anticipates. Lucid CEO Silvio Napoli said the company would welcome positive support while preparing for uncertainty, and Scout Motors CEO Scott Keogh said the company was built to operate without relying on legislation that might not materialize.

September 30, 2025: The federal new clean-vehicle tax credit expired for vehicles acquired after this date.
September 2025: U.S. new-EV sales totaled 146,076.
November 6, 2026: Rivian CEO RJ Scaringe made his planning comments.
November 9, 2026: Lucid CEO Silvio Napoli made his planning comments.
November 11, 2026: Scout Motors CEO Scott Keogh made his planning comments.

Roadmap

The expiration of the federal clean-vehicle tax credit under the Inflation Reduction Act removes a key subsidy that had helped narrow the price gap between electric and gasoline vehicles. Automakers are now restructuring plans around a market where EVs carry an 11% price premium without federal support.

Buyers shopping for a new EV now face the full price without the $7,500 federal credit, with the average transaction price at $55,879. Those considering a purchase may need to compare total ownership costs against comparable gasoline vehicles, which currently sell for about 11% less.

The takeaway

The loss of federal EV incentives is shifting the economics of electric vehicles toward buyers willing to pay a premium. Readers weighing an EV purchase should factor the absence of the credit into their budget calculations.