EV stocks brace for post-tax credit year as tariff pressures persist

Li Auto

31/12/2025 12:08

** Electric vehicle companies navigated elevated manufacturing costs due to the Trump administration's tariff policies, and the lapse of federal tax credits for battery vehicles

** Shares of Rivian Automotive RIVN.O were up over 47% this year after falling 43% in 2024; co announced plans to develop its own custom chip for self-driving features and AI integration

** It expects lower tariff costs from some government incentives, but braces for an uncertain road ahead due to the expiry of the $7,500 tax credit on vehicle leasing

** Luxury EV maker Lucid's LCID.O stock slumped 63% YTD, marking a fourth-straight year of annual decline

** Co has grappled with a surge in manufacturing costs, and aggressively struck deals with North American companies to domestically source critical minerals

** U.S.-listed shares of Chinese EV firms Xpeng 9868.HK rise 80%, Nio 9866.HK up 26%, and Li Auto 2015.HK down 28% YTD

Rivian and Lucid shares diverge https://reut.rs/3N7X2uu

 (Reporting by Zaheer Kachwala in Bengaluru)

 ((Zaheer.Kachwala@thomsonreuters.com))