Rivian R1T EV leasing launches in select markets

Rivian on Monday started leasing select models of its all-electric R1T pickup truck, a move to expand sales and its customer base beyond early adopters of electric vehicles.

The company said the program is available to customers in 14 states: Arizona, California, Colorado, Florida, Georgia, Massachusetts, Michigan, Missouri, New Jersey, New York, Nevada, Pennsylvania, Texas and Washington.

A Rivian spokeswoman said the automaker is working with its existing financial partner Chase for the leasing program, which she said will expand over time.

“We chose these launch states based on many factors including where our customers are located and where leasing is most popular,” she said in an email to CNBC.

Based on the company’s website, leasing is largely available on higher-end models of the vehicle that can cost more than $90,000.

Leasing has become a popular way for customers to try out an electric vehicle without any long-term commitment. Doing so also qualifies a buyer for a full $7,500 federal tax credit under the Inflation Reduction Act, compared to the $3,750 that purchasers of Rivian models currently qualify for.

Leasing is categorized as commercial business under the IRA and therefore exempt from regulations that require the vehicle and battery components to be made in North America. Most EVs for sale today do not qualify for the full tax credit because of where the vehicles or components are built.

“Today, Rivian launched a new way for customers to get behind the wheel of a Rivian with the introduction of leasing,” the company said in an emailed statement. “Rivian’s leasing program offers the adventure of owning a Rivian with more flexibility.”

Rivian, earlier this month, raised its production forecast for the full year by 2,000 vehicles to 54,000 units on the back of sustained demand.

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