Bad Bets: Massive EV Subsidies Not Paying Off

RealClearPolitics

by James Varney, RealClearInvestigations

February 26, 2026

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The article highlights a critical issue surrounding massive public investments in electric vehicle (EV) manufacturing, particularly the $8 billion pledged to Rivian's Georgia plant, which has faced significant delays and underperformance. Despite substantial funding from both federal and state governments, including a $6.5 billion loan approved by the Biden administration, Rivian's sales and revenue have fallen short of expectations. The company sold only 25,000 EVs in the U.S. in 2025, far below initial estimates, and its financial performance has been lackluster. The factory, initially slated to open in 2023, now won't begin production until 2028. The broader context of public spending on green energy projects, including EVs, reveals a pattern of risky bets with uncertain returns. While bipartisan support for EV initiatives has driven significant investments—ranging from tax credits to manufacturing loans—the lack of strong consumer demand and growing competition from China pose serious challenges. The article points out that the U.S. government has allocated tens of billions of dollars in subsidies and loans, yet many projects have underperformed or defaulted, leaving taxpayers at risk of financial loss. For instance, the Advanced Technology Vehicle Manufacturing (ATVM) program has seen several defaults, including losses on loans to Fisker Automotive and Vehicle Production Group. This issue matters politically because it raises questions about the effectiveness of government intervention in the market and the potential misuse of taxpayer dollars. Critics argue that such large-scale investments, particularly when market interest is tepid, could lead to costly failures akin to the Solyndra debacle. The article underscores a broader debate over whether public funds should be used to "impose" green energy initiatives or if market forces alone should dictate industry growth. As the U.S. faces growing competition from China in the EV sector and struggles with low consumer uptake, the stakes for taxpayers—and the future of these subsidies—could not be higher.

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Originally published on RealClearPolitics on 2/26/2026