Zinger Key Points
- Tesla may remain less impacted by the changes in these polices.
- Elon Musk said, "Take away the subsidies. It will only help Tesla," in July 2024.
- Get Pro-Level Earnings Insights Before the Market Moves
Shares of Rivian Automotive Inc. RIVN and Lucid Group Inc. LCID have declined sharply following President Donald Trump’s announcement of significant electric vehicle policy changes. Technical analysis of these companies reflects a bleak picture for the stocks in the near term.
What Happened: According to Benzinga Pro, shares of Rivian fell by 10.93% and Lucid Group slid 12.70% over the last two trading sessions after Trump signed executive orders related to EV policies on his first day in office.
The stocks of these EV makers have been under pressure over the speculation of Trump’s reversal of the tax credit worth $7,500.
According to the technical analysis of daily moving averages from Benzinga Pro, Rivian’s stock is under short-term pressure with longer-term support. Whereas, Lucid’s stock is undergoing a period of consolidation.
Rivian Automotive
RIVN's shares closed at $12.69 apiece on Wednesday and it was below its eight-day simple moving average of $13.66 and its 20-day average of $14 apiece. It was also below its 50-day simple moving average of $12.82.
The stock was above its 200-day simple moving average of $12.28, suggesting support at this level in the longer term.
On the other hand, the relative strength index of 43.52 suggested that the stock is in a neutral zone.
Lucid Group
LCID's shares closed at $2.67 apiece on Wednesday and it was below its eight-day simple moving average of $2.96 and its 20-day average of $3.08 apiece. The 200-day simple moving average was also above the share price at $2.93, signaling a bearish trend.
However, the stock was above its 50-day simple moving average of $2.59 acting as a support. Thus, suggesting a phase of consolidation.
On the other hand, the relative strength index of 41.69 indicates that the stock is in a neutral zone.
Why It Matters: After his swearing-in ceremony, Trump’s executive order canceled the target set by Joe Biden in 2021, mandating 50% of EV sales in the U.S. by 2030.
President Trump also halted unspent funds from a $5 billion EV charging infrastructure program. The administration will also reassess emissions rules requiring automakers to sell 30% to 56% electric vehicles by 2032. Additionally, Trump plans to challenge California’s zero-emission vehicle mandate, also adopted by 11 other states.
Tesla Inc. TSLA CEO Elon Musk, a major Trump supporter and the world’s richest person, in an X post dated July 16, 2024, said, “Take away the subsidies. It will only help Tesla.”
Following this, during a post-earnings call, when Tesla reported its lowest profit margin in over five years. Musk said, “It would be devastating for our competitors and hurt Tesla slightly, but long-term, it would probably actually help Tesla.”
For Rivian, known for electric trucks, SUVs, and delivery vans, the potential repeal of tax credits and reduced EV infrastructure funding could hurt demand for its premium vehicles. Lucid, another emerging EV brand, faces similar challenges with reduced government incentives and infrastructure support, both key to its growth.
In premarket on Thursday, RIVN was down 0.39% and LCID fell by 1.50%.
Read Next:
Photo courtesy: Rivian
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
