Here's an interesting take on what most people consider bad news: the end of the $7,500 federal EV tax credit might actually benefit some electric vehicle makers. At least that's the view from Rivian Automotive (RIVN) CEO RJ Scaringe, who sees a silver lining where others see storm clouds.

Finding the Bright Side

Rivian was among several automakers reporting strong third-quarter deliveries as consumers rushed to grab that tax credit before it disappeared. Now comes the hangover: early October data suggests weak sales volumes as the subsidy expires, exactly what you'd expect when a $7,500 incentive vanishes.

For an electric-vehicle-only company like Rivian, this should be particularly painful. But Scaringe, speaking recently at the Rotary Club of Atlanta, offered a counterintuitive perspective.

"I would say in the medium to long term, it actually simplifies things for Rivian," Scaringe explained. "Narrowly and myopically through the lens of Rivian, it actually creates less competition."

His reasoning? Legacy automakers are already backing away from their electric ambitions. Ford Motor Company (F) and General Motors Company (GM) have both announced plans to scale back EV production and cancel several planned models. Without the tax credit sweetening the deal for consumers, these traditional manufacturers seem even less enthusiastic about the transition.

"You're going to see a lot of manufacturers step back pretty aggressively from electrification," Scaringe predicted.

Short-Term Pain, Long-Term Gain

Scaringe acknowledges the immediate impact from losing the tax credit, but he's betting on a quick recovery in demand. "I do think in the fullness of time, it doesn't change any of the outcomes," he said.

The real risk, according to the Rivian CEO, is for companies pulling back now. He believes electrification remains inevitable, and manufacturers who throttle their EV programs today will find themselves badly positioned for the 2030s.

"I think every manufacturer needs to be developing world-class leading technology in what is undeniably the future state of this industry," Scaringe said. "And throttling back right now will make it extremely hard for those companies to participate in the 2030s if you look at the competition that's coming, particularly from China."

The Affordability Challenge

Scaringe has been vocal about the competitive threat from China, where consumers have access to numerous low-cost electric vehicles. By contrast, American buyers have only "two great, high compelling choices" priced under $50,000, according to the CEO.

Tax credit or not, affordability remains the crucial factor for widespread EV adoption. That's why Rivian is launching its R2 model next year with a starting price around $45,000.

Scaringe previously described the R2 as offering "the magic of what is a Rivian at that higher price and puts it into a slightly smaller package." The lower price point will open up the potential customer base "dramatically," he said.

So while the tax credit expiration might sting in the short term, Scaringe is playing a longer game. If competitors retreat and Rivian maintains its focus on building affordable EVs, the company could emerge stronger when the market inevitably shifts electric. It's a contrarian bet, but then again, starting an EV company from scratch was pretty contrarian too.