Rivian, Lucid and Scout are not counting on Democrats to restore incentives for electric vehicles

Executives at several U.S. electric vehicle makers said they weren’t counting on increased federal support for their companies once Democrats take control of Congress in January, but they said they would gladly accept it if it happened.

This was the general feeling of the CEOs of Rivian Automobile, Lucide Group and EV startup Scout Motors in interviews with CNBC after Democrats’ historic victory in the midterm elections.

“We honestly built Scout from day one to be in an environment where we’re not going to rely on, say, legislation or rely on things that may or may not be there,” Scout CEO Scott Keogh, an automotive veteran, told CNBC on Wednesday.

Electric vehicle manufacturers have had to face strong support from Washington over the years. The Trump administration ended or reduced its support for climate change and electric vehicle initiatives supported by the Biden administration, including a customer incentive of up to $7,500 for the purchase of an electric vehicle.

Historical automobile manufacturers such as General engines and electric vehicle startups were counting on these credits to help them increase their sales and contribute to the profitability of electric vehicles. But today, they no longer benefit from the same level of federal aid.

Rivian CEO RJ Scaringe said he hopes the Democratic-controlled Congress and Republican President Donald Trump can find common ground to advance the electric vehicle industry, but Rivian isn’t counting on that.

“We try not to plan for these kinds of things. The reality is it will probably have less impact than we think,” Scaringe said Nov. 6 after the election results. “I think we’re going to have a lot of difficulty getting things done.”

Lucid, another electric vehicle maker, backed by Saudi Arabia’s Public Investment Fund, is taking a similar approach.

“You know, they say, ‘Plan for the worst and…hope for the best.’ “That’s all we can say,” Lucid CEO Silvio Napoli told CNBC on Monday. “Anything positive, we’ll take it.”

The expected lack of support comes as Democrats appear to be more focused on hot-button issues such as health care and data centers rather than climate change and support for alternative energy technologies such as electric vehicles.

CNBC previously reported that House Democrats plan to introduce bills restoring enhanced health insurance subsidies that expired under the Republican-held Congress and reversing cuts to Medicaid that Trump signed into law last year. They also plan to focus on oversight of the Trump administration and affordability.

Rachel McCleery, executive director of the nonprofit Policy Advisory Coalition for Reimagined Mobility at SAFE, said she thinks affordability issues could also include the cost of vehicles, including electric vehicles.

“I expect there will be legislative debates about what to do going forward, including on incentives for EVs and the EV supply chain,” said McCleery, a former senior adviser to the U.S. Department of the Treasury and Ford engine political director, said. “Reducing the cost of vehicles for American consumers is a priority for Democratic policymakers, and electric vehicles are a critical part of that agenda because of the multiple challenges that greater adoption of electric vehicles solves.”

Scout’s Keogh said that if lawmakers decide to offer any type of support, he would prefer it to be for electric vehicle production, which could then have a trickle-down effect on vehicle prices and help businesses amid inflated costs.

“I still prefer it on the production side,” Keogh said. “Anything that can reduce production costs will, of course, be passed on to the customer.”

Affordability has been a concern for electric vehicle adoption, as the vehicles typically cost more than traditional models with internal combustion engines.

Electric vehicle sales soared last year before the Trump administration ended the incentive of up to $7,500 after September 2025, but they have since declined from that peak.

Cox Automotive reports that the average price of a new electric vehicle in September was more than $54,800, according to the most recent data available. That compares to the overall industry average, which stood at just over $51,100 last month.

“Ultimately, incentives can help accelerate adoption, but the industry can’t build its long-term strategy around them,” Stephanie Valdez Streaty, Cox’s director of industry insights, said Friday. “The goal should be to make electric vehicles affordable and compelling enough that they make sense for more consumers, with or without incentives.”