An end to U.S. EV tax credits is unlikely to doom Rivian altogether. Its $5.8 billion deal to share technology with German auto giant Volkswagen ( VWAGY 0.89%), which closed earlier this week, should help insulate Rivian from near-term demand shocks in the U.S. market.

The electric-vehicle purchase tax credit makes buying Teslas and other electric vehicles more affordable for most car buyers.

Donald Trump’s transition team is planning to kill the $7,500 consumer tax credit for electric-vehicle purchases as part of broader tax-reform legislation, a report said.