Lucid and Rivian sink as EVs sit in the crosshairs of Trump’s “big, beautiful bill”
Lucid is down 25% this year.
Ten days ago, Lucid appeared on the road to recovery. Its stock had climbed 45% since its drop to all-time lows not long after its CEO departed in February.
Since then, it seems to have run out of battery: the stock is down 23% over the past week and a half, and down more than 6% in Friday afternoon trading. The stock is getting lots of attention, with its trading volume at more than 160 million shares on Friday afternoon, well above its 30-day daily average of 112 million.
Shares of rival Rivian were also down more than 3% Friday.
The drops appear to be due to investors hearing more about President Trump’s “big, beautiful bill” and just what it could do to the US electric vehicle industry. The bill, which passed in the House on May 22, would slash EV battery manufacturing subsidies, tax credits, and charger network budgets, and impose a $250 annual EV fee. Any resulting EV price hikes would combine with the dual 25% tariffs on vehicle and auto part imports.
While pricey Lucid and Rivian vehicles largely only qualify for the $7,500 EV tax credit through leasing loopholes, the bill’s other inclusions spell bad news for two companies that have been burning cash for years.
And it’s not just Rivian and Lucid that stand to lose big: according to a fresh JPMorgan report, the pending legislation threatens more than half of Tesla’s profits.
