California’s Department of Transportation (Caltrans) is facing questions over its decision to purchase nearly 1,000 Rivian electric vehicles for approximately $97 million, with critics questioning whether taxpayers received a fair deal.
According to state procurement records, Caltrans has ordered 977 Rivian vehicles since June 2025, including 638 R1T pickup trucks and 339 R1S SUVs. The purchases were split across two orders.
The first order, placed in June 2025, included 453 vehicles valued at $44.3 million. A second order followed earlier this year, adding another 524 vehicles for $52.7 million.
Questions Over Pricing and Competition
The deal has attracted scrutiny after Sacramento broadcaster ABC10 reported that Caltrans failed to respond to repeated questions about why Rivian was selected, how the vehicles would be used, and how many were already in service.
The state’s Department of General Services said the deal went through competitive bidding and that Rivian’s offer was 2% under MSRP. Rivian said the state’s price came in roughly $1,700 under retail per vehicle.
However, state procurement records show Rivian’s current contract prices range from $77,635 to $91,635, before additional equipment and taxes.
One factor limiting competition is the DGS contract list, which currently identifies the Rivian R1T as the only pickup in its light-duty category.
Caltrans has previously made large EV purchases from other manufacturers, including an order for 399 Tesla Model 3 sedans in 2022, valued at more than $18 million.
The Rivian purchase is part of California’s broader effort to electrify government fleets. However, with nearly $100 million committed, Caltrans has yet to publicly explain its vehicle selection or provide a complete breakdown of the additional costs.
For Rivian, the contract represents a significant expansion of its government fleet business, which previously accounted for approximately 700 vehicle sales over three years.
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