Have you thought about how small the EV segment really is? Today, less than one in ten new vehicles sold in the U.S. are BEVs. Now start to think about what kind of buyer each EV attracts—you've got high-ranking exects picking up Porsches, glamping outdoorsy folk looking at Rivian and then there's anyone not looking at a Tesla scoping out GM and VW. Niches exist, which is exactly what Rivian's CEO is banking on being what separates its customers from others and allows the brand to coexist.
Welcome back to Critical Materials, your daily roundup for all things EV and automotive tech. Today, we're chatting about Rivian and Scout's budding bromance, Lucid scoffing at the EV tax credit kerfuffle, plus, Lotus scrapping its EV-only plan in favor of EREVs. Let's jump in
30%: Room For Two: Rivian And Scout Can Coexist
Rivian CEO RJ Scaringe has been playing it surprisingly cool as Volkswagen brings its new rough-and-tough brand up to bat. See, Scout is really the first true competitor for Rivian—sure, other EVs exist, but Scout is the first brand to bring package strong, rugged battery power in the shape of a truck and blend the lifestyle component along with it.
The threat of competition hasn't phased Scaringe, though. In fact, in a recent media roundtable, the CEO even nodded to the notion of the two brands coexisting without problem. Why, you might ask? Well, according to Electrek, Scaringe says there are "less than five" compelling EVs in the sub-$50,000 price range, which should make differentiating itself from the competition by simply making a better product surprisingly easy.
You may have noticed that Rivian and Scout have been getting awfully cozy lately. You can thank Rivian's partnership with Volkswagen for that, as this move has enabled Scout to take advantage of the new Rivian-sourced tech—namely the zonal architecture—which is available as part of the agreement. While great news for all involved, the tech sharing has blurred the line between brands a bit, which means that we should once again shout this from the rooftops: Rivian and Scout are not the same.
Not the same brand, not the same chassis, not even the same underpinnings outside of the zonal architecture and some software. Hell, despite some overlap, the two brands aren't even targeting same target audience. Rivian is marketing to EV enthusiasts with active outdoor lifestyles, while Scout is banking on nostalgia to sell an efficient blue-collar work truck. It's like Patagonia jacket versus Carhartt overalls—and that's why they can coexist.
Scaringe's optimism isn't without warrant. The EV segment still makes up fewer than 10% of America's new vehicle registrations, which makes it still pretty small. And with the threat of a repealed EV tax credit eating into adoption rates, that leaves plenty of time for brands to start filling up the market with their own cars, trucks, and other battery-powered people movers. In case you forgot, the Ford F-150 Lightning, Chevy Silverado EV, and Tesla Cybertruck all exist, too. Again, each of these has some overlap with Rivian and Scout, but still cater to a specific customer.
So, at least for now, the segment seems harmonious. Both brands live in their own corners and are attracting their own customers, blissfully aware that the other exists and unfazed by the other's existence. But will the friendly competition last if either brand starts to grow and offer more "normie" versions of their cars for the mass market? Only time will tell.
60%: Lucid Doesn't Care About The EV Tax Credit Going Away
It seems like the whole auto industry is holding its breath over the future of the $7,500 EV tax credit—everyone except for Lucid, that is. Lucid's attitude is apathetic at best, with CEO Peter Rawlinson throwing a big fat shrug at the unknown rather than sweating whether or not Lucid's future hinges on the incoming Trump administration doing away with the EV tax credit.
“Lucid, amongst all the EV makers, is really the most immune from that,” said Rawlinson in an interview with Bloomberg, referencing the possible revocation of the $7,500 EV tax credit.
See, Lucid is in a unique position: it doesn't need the credit. In fact, the only vehicle that it sells today—the $69,900-and-up Lucid Air—doesn't even qualify for it because the cheapest model starts above the $55,000 threshold for electric sedans. Lucid hasn't said whether or not its upcoming Gravity model (which technically starts within the $80,000 cut-off limit for SUVs) qualifies for the tax credit, but judging by Rawlinson's comment, it doesn't seem to matter:
Rawlinson believes that the tech in Lucid's vehicle, soon-to-be vehicles, speaks for itself and will help guide the automaker into the next phase of its Gravity-fed growth. The CEO feels that the EV startup has even surpassed Tesla in industry-leading efficiency, so having Elon Musk at the ear of the president-elect for favorable treatment seems to put very little fear in Lucid's business:
“We’ve really taken the mantle of technology leadership from Tesla right now, and this is not really sufficiently recognized," said Rawlinson. "So, I think we’re in a very strong position to weather any such storm.”
These are bold words for a car company that is projected to sell just half of a percent (yes, 0.5%) of the number of cars compared to the company it claims to have stolen the tech crown from. Rawlinson seems to be convinced that people will be lining up to buy a Lucid because it's a Lucid, not because it happens to be the best deal out there because of a meager $7,500 discount.
But then again, if Rawlinson is right, it could finally be Lucid's time to shine amongst the luxury nameplates. The automaker still needs to overcome its currently unprofitable carmaking operation before all of its investor funds dry up (again), which is what it appears to be depending on the Gravity to help with. But the tax credit? Not so much.
90%: Lotus Hops On EREV Train, Ditches EV-Only Plan
Lotus has always been the brand that cares more about cornering than cupholders. The driver-centric approach was Lotus' niche, but with years of bleak sales amid other premium brands, the same technique would also almost be its coup de grace. Thankfully, Chinese automaker Geely extended a lifeline—one that would transform the brand into an all-electric lifestyle brand, or so we thought.
The British racing brand previously committed to electrifying its lineup by 2028, and it seemed on track to do exactly that as it introduced its Eletre SUV. But now, Lotus seems to be taking the same road as other brands and ripping up plans for an EV-only future. But rather than commit to a new ICE powertrain, Lotus is instead looking to the spectrum of hybridization in Geely's parts bins. Now, it could soon offer Plug-In Hybrids (PHEV) and Extended Range EVs (EREV) options.
“At Lotus, we have always chosen the best power technology available, whether it’s pure gasoline, pure electric, hybrid or range-extended [EV],” said Lotus CEO Feng Qingfeng in an interview with the Wall Street Journal, according to AutoCar.
Feng said that Lotus previously rejected plug-in hybrids because they were a compromise compared to pure EVs. While Lotus appears to have rethought this for future models, the brand isn't completely sold on only EVs or only PHEVs. Instead, it will also look to EREVs—that is, an EV with a combustion-powered generator to charge the battery like Scout's Harvester and Ram's Ramcharger—to complete its lineup.
It's hard not to ignore that this goes against just about everything Lotus stood for in its early racing days. I can't help but think of that line famously uttered by founder Colin Chapman: “simplify, then add lightness." Maybe it's the purist in me, but this feels more like "complicate, then add compromise. But, then again, the purist-driven financials clearly aren't on Lotus' side.
So scoff at this direction if you must, but for Lotus, the move here is less about tradition and more about staying afloat in a market where Chinese smartphone makers can build 1,548-horsepower EVs that destroy Nurburgring records for breakfast. Stay tuned to see how this chapter for Lotus plays out in the long run.
100%: What Was The Last Gas Car You Cross-Shopped To An EV?
New car buyers are quickly finding themselves with options that never existed before. EVs are starting to penetrate the market, and they offer pretty darn competitive in-class performance compared to gas-powered cars. Think: more seating area, more cargo space, better acceleration. It's a compelling argument if you're not worried about the slightly elevated cost or range anxiety.
I still find myself window-shopping gas cars and EVs constantly (impractically, if I'm being real with myself). And with limited options out there, it's easy to start crossing segments and comparing models that aren't even out yet. For example, the GR Corolla versus the upcoming Rivian R3X—one of them won't be on the streets for years and the other will surely undergo a refresh or be discontinued by the time it launches.
More realistic are the luxury and truck segments. For example, The Porsche Taycan versus the BMW 5-series, or the F-150 versus F-150 Lightning. A more practical example would be the Chevy Blazer EV and the Mazda CX-50.
There are plenty of options here, and I want to know which gas car you last cross-shopped with an EV. Let me know in the comments.
