Written by Cláudio Afonso | LinkedIn | X
Donald Trump issued an executive order on Monday aimed at rolling back pro-electric vehicle (EV) policies. The order seeks to eliminate state emissions rules that limit gasoline-powered car sales, end subsidies for EVs, and potentially scrap the $7,500 federal tax credit for EV buyers.
Trump directed federal agencies to halt disbursements tied to former President Joe Biden’s Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act, which include funding for EVs and clean energy projects.
“Today, we will end the Green New Deal and we will revoke the electric vehicle mandate, saving our auto industry and keeping my sacred pledge to our great American auto workers,” the U.S. President stated during his speech on Monday . “In other words, you’ll be able to buy the car of your choice.”
Shares of the Detroit automakers General Motors, Ford, and Stellantis are currently rising 5%, 2%, and 2.4%, respectively, as investors expect a boost for traditional vehicle production.
Tesla
EV-focused companies saw declines, with Tesla’s stock falling nearly 7% in early trading before paring losses. Tesla shares are trading 2.10% at $417 after recovering from a session low of $406.
Lucid
Lucid shares faced a similar trajectory, declining 8.3% in early trading from $3.04 to $2.80. While the stock has shown modest signs of recovery, it remains 6% lower at $2.88.
In November, Lucid Motors CEO Peter Rawlinson minimized the impact of U.S. electric vehicle tax credits on the company. “Lucid, amongst all the EV makers, is really the most immune from that,” Rawlinson stated two months ago.
Rivian
Shares of the EV maker Rivian, which is seen as one of the most affected companies, fell to below $13.00 on early Tuesday and are currently trading 6.5% lower at $13.28.
Americans purchased approximately 1.3 million battery electric vehicles (BEVs) in 2024, representing about 8% of all new car sales. Current EPA standards project that EVs would account for roughly 50% of new vehicle sales by 2032.
The EV maker Nikola, which has been fighting for survival, also saw its shares plunging nearly 10% to $1.21. The company produces both battery-electric and hydrogen-powered trucks.
Written by Cláudio Afonso | LinkedIn | X
