U.S.-based electric-vehicle (EV) stocks have had a great past month. Shares of Tesla (NASDAQ: TSLA), Rivian Automotive (NASDAQ: RIVN), and Lucid Group (NASDAQ: LCID) are each higher by between about 50% and 60% in that time. There have been company-specific reasons for each of those moves.
Today, however, Tesla's stock jumped by as much as 7%, while Rivian and Lucid stocks are sinking. As of 1:15 p.m. ET, Tesla shares were up by 5%, Rivian was lower by 3.2%, and Lucid had plunged by 12.7%.
A changing political landscape that could be less friendly to EV makers is one reason for today's moves lower. But Tesla investors realize that the company may be better able to navigate those macro winds, especially after CEO Elon Musk made his views public this weekend.
Tesla's Elon Musk jumps into the fray
With the backdrop of the Republican convention beginning today, analysts see voters swinging more toward the Republican candidate after President Biden's poor performance in the recent debate and the assassination attempt on former President Donald Trump this weekend.
But Trump has expressed that he intends to repeal the existing EV-purchase tax credits that are part of the Inflation Reduction Act. That helps explain why Rivian and Lucid have been giving back recent stock gains today. Rivian shares had been rising since last month when global automaker Volkswagen said it would invest up to $5 billion over two years in the EV start-up.
Meanwhile, investors also have rewarded Lucid for its announcement that its nearly 2,400 second-quarter luxury-EV deliveries jumped by more than 20% versus the first quarter and over 70%, compared to the prior year period.
But the moves higher in those stocks took a pause today as the momentum for a Trump election victory took hold in the markets. Meanwhile, Tesla shares jumped after Elon Musk publicly endorsed Donald Trump for president. The stock is also recovering some losses from last week after reports of a potential delay in Tesla's planned Aug. 8 Robotaxi update.
EV investors need to think long term
Regardless of the political swings and recent events, EV investors should still be looking at the long-term prospects of the companies and the industry, in general. That means that potential changes in the landscape notwithstanding, investors should be watching for what Tesla has to say when it reports second-quarter earnings next Tuesday, July 23. After delivering about 444,000 EVs in the second quarter, the company will discuss whether it can accelerate sales in the second half of 2024 to match the 1.81 million vehicles it delivered in 2023.
Beyond that, the update on Tesla's self-driving technology will be important when it officially reveals the Robotaxi after the earnings report. Rivian and Lucid investors will want to see their companies' quarterly updates, as well, scheduled for Aug. 6 and Aug. 5, respectively.
Source
