Rivian, Lucid Shares Are Falling Today: What's Going On?

Rivian Automotive Inc. RIVN and Lucid Group LCID shares are trading lower Tuesday as the EV sector reacts to major policy changes from President Donald Trump.

What To Know: According to Reuters, Trump revoked a 2021 executive order issued by former President Joe Biden, which had aimed for 50% of all new vehicles sold in the U.S. by 2030 to be electric.

Trump's new executive order eliminates the non-binding EV target but also freezes unspent funds from a $5 billion EV charging infrastructure program. Additionally, the administration plans to reassess emissions regulations that currently require automakers to sell 30% to 56% electric vehicles by 2032 to meet federal standards.

Trump has also called for the potential repeal of the $7,500 federal tax credit for EV purchases and plans to challenge California's waiver allowing it to mandate zero-emission vehicles by 2035, a policy followed by 11 other states.

These sweeping policy reversals potentially mark a significant shift in government support for the EV industry, raising concerns about reduced incentives for both manufacturers and consumers. Rivian and Lucid, as emerging players in the EV space, are particularly vulnerable to changes in government backing and infrastructure support.

Price Action: Rivian shares were down 6.47% at $13.29 and Lucid shares were down 6.84% at $2.86 at the time of publication on Tuesday, according to Benzinga Pro.

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