TL;DR
- EV sales softened in Q2 2025 as key tax incentives were repealed.
- Rivian received $1 billion from Volkswagen as part of a previously announced partnership.
- Lucid, Tesla, and Hummer EVs posted mixed sales data, with Tesla continuing to slide.
- The U.S. “reconciliation act” removes federal EV credits, impacting new models and startup plans.
- Electric RV makers Pebble and Grounded delivered first units despite economic headwinds.
- Industry insiders warn of “Minimum Viable Autonomy Theater (MVAT)” amid Tesla’s self-driving demo.
Rivian Secures $1 Billion from VW Despite Sluggish Sales
In a rare bright spot for the electric vehicle (EV) sector this quarter, Rivian received a $1 billion investment from Volkswagen, advancing a broader $5 billion collaboration announced in June. The deal, which includes co-development of software and platform components, is seen as a critical liquidity boost for Rivian, which has faced persistent demand uncertainty and cost pressures.
While Rivian’s Q2 sales data has yet to show a turnaround, the company is banking on Volkswagen’s manufacturing muscle and global reach to reinvigorate its R1 platform and future low-cost offerings.
“This capital injection validates the long-term potential of our platform and brings us closer to sustainable profitability,” a Rivian spokesperson told TechCrunch.
EV Sales Under Pressure as Tax Credits Disappear
Q2 2025 ended with discouraging trends for the U.S. EV market, coinciding with the formal passage of a Republican-led reconciliation bill that repeals key provisions of the Inflation Reduction Act (IRA).
The legislation eliminates:
- Federal EV tax credits for new and used vehicles.
- Installation subsidies for residential EV chargers.
- Incentives for solar, wind, and clean hydrogen infrastructure.
These policy reversals are expected to raise upfront costs for consumers, particularly in segments dependent on incentives to maintain price parity with internal combustion engine vehicles.
EV Industry Q2 Snapshot
| Manufacturer | Q2 2025 Sales Change | Notable Update | Source |
| Tesla | ▼ 12% YoY | Second consecutive year of declining deliveries | Reuters |
| Rivian | Flat YoY | Secures $1B from VW amid demand stagnation | TechCrunch |
| Lucid | ▲ 6% QoQ | Focused on scaling Gravity SUV production | Lucid Motors |
| GMC Hummer EV | ▲ 8% QoQ | Nearly outsold Ford’s F-150 Lightning for the first time | GM Earnings |
Tesla Faces Autonomy Theater Criticism
In a bid to reclaim headlines, Tesla CEO Elon Musk showcased what he labeled the company’s first “autonomous delivery”, where a Model Y reportedly drove itself from a factory to its new owner’s residence. However, mobility insiders quickly labeled the event as “MVAT” — Minimum Viable Autonomy Theater.
The term, coined on the Autonocast podcast, refers to highly staged demonstrations designed to simulate progress without showing scalable or repeatable autonomy.
“Unless Tesla or others can replicate this at scale and in unpredictable conditions, it’s more theater than tech,” said Autonocast co-host Ed Niedermeyer.
The tactic isn’t new—automated driving startups used similar tactics in the 2015–2019 hype cycle—but the return of MVAT suggests that investors and consumers may be questioning commercial AV roadmaps again.
Startup Movement: Electric Vans and Trailers Hit the Road
Despite capital constraints and regulatory reversals, two EV startups announced first product deliveries this month:
- Pebble, the California-based maker of electric travel trailers, delivered its first units to customers. The trailers feature self-parking, solar recharging, and remote towing tech.
- Grounded, a Detroit startup founded by ex-SpaceX engineers, delivered its G3 electric van to its first customer. The G3 is aimed at the commercial van and RV market.
These milestone deliveries underscore continuing niche innovation in mobility—albeit in less capital-intensive segments.
EV Policy Rollback Triggers Business Model Shifts
The rollback of U.S. EV tax credits has already begun impacting forward-looking business models. Notably, Slate Auto, an EV truck startup backed by Jeff Bezos, quietly updated its website to remove references to a sub-$20,000 price point. The figure had previously relied on applying the now-defunct $7,500 federal credit.
Analysts note this could delay product launches or increase pricing in the budget EV segment, where margin pressures are highest.
“Without incentives, you’re either raising prices or shrinking margins—neither is ideal in this capital environment,” said Morgan Stanley auto analyst Adam Jonas.
Autonomy Updates: Uber Alumni Circle Pony.ai Deal
Behind the scenes, TechCrunch reports that Uber co-founder Travis Kalanick may be working with investors to acquire the U.S. arm of Chinese autonomous vehicle firm Pony.ai. Former Uber ATG lead Eric Meyhofer is reportedly involved in the bid.
Meyhofer previously ran Uber’s self-driving division before it was sold to Aurora. He now has ties to Kalanick’s CloudKitchens venture and a stealth robotics project known as Lab37.
Though still speculative, a deal could rekindle Kalanick’s ambitions in the automated delivery or ride-hailing sectors, especially in light of Uber’s increased interest in robotics logistics.
Quote of the Week
“If your autonomy demo needs a press release, it’s not autonomy—it’s choreography.”
— Alex Roy, Autonocast
Conclusion: Sector Faces Policy Whiplash, But Capital Still Finds Quality
The U.S. EV sector is adjusting to a post-IRA landscape, with ripple effects being felt from startup showrooms to corporate finance departments. Still, deals like the Rivian–Volkswagen alliance and product launches from niche innovators like Pebble and Grounded demonstrate that capital and creativity remain present—even if policy tailwinds are shifting.
As Q3 begins, all eyes are on:
- Rivian’s integration with Volkswagen systems.
- Tesla’s next move amid product and sales setbacks.
- Washington’s response to rising pressure from the auto lobby to restore tax relief.
