
Electric Vehicle Stocks Slide Following Policy Changes
Shares of electric vehicle (EV) companies, including Rivian Automotive Inc. (RIVN) and Lucid Group Inc. (LCID), are experiencing a decline in the wake of policy changes announced by President Donald Trump. These changes have raised concerns about the future of government support for the EV industry.
Revocation of 2021 Executive Order: Trump has revoked a 2021 executive order issued by former President Joe Biden, which set a non-binding target for 50% of new vehicles sold in the U.S. to be electric by 2030.
The new administration has frozen unspent funds from a $5 billion EV charging infrastructure program.
The administration plans to reassess emissions regulations requiring automakers to sell between 30% and 56% electric vehicles by 2032 to meet federal standards.
The new policies also raise the possibility of repealing the $7,500 federal tax credit for EV purchases.
Trump has expressed intentions to challenge California's waiver, which mandates zero-emission vehicles by 2035 and has been adopted by 11 other states.
These policy changes could have a significant impact on EV companies like Rivian and Lucid. The potential repeal of tax credits and reduced funding for EV infrastructure could dampen demand for their vehicles. Additionally, the reassessment of emissions regulations and the challenge to California's zero-emission vehicle mandate add further uncertainty to the industry.
Following the announcement of these policy changes, Rivian shares were down 4.51% at $12.69 and Lucid shares were down 6.64% at $2.67 at market close Wednesday.