Rivian, Tesla, and Lucid impacted as Trump signs resolutions crushing California’s EV rules
Shares of Rivian and Lucid fell on Thursday, while Tesla was roughly flat.
President Trump on Thursday signed three congressional resolutions revoking California’s ability to set its own emissions standards, effectively killing California’s phaseout of new gas-powered vehicles.
Shares of electric vehicle makers Rivian and Lucid dropped on the news. Tesla was mostly flat on the day, though anti-EV policies are obviously bad for the company’s bottom line.
California’s plans, which were adopted by 11 other states and Washington, DC, would have gradually banned the sale of gas-only vehicles by 2035 through tiered sales standards. Zero-emission vehicles would have needed to account for at least 35% of vehicles sold in California next year, under the standards. Major automakers including GM and Ford lobbied heavily to repeal the state’s mandates.
Given its population, the Golden State is a major part of the US auto industry — and it’s been huge for EVs. In 2022, 40% of zero-emission vehicles sold in the US were sold in California. According to the California New Car Dealers Association, more than 12,000 Rivian vehicles were registered in the state last year, nearly a quarter of the company’s overall sales on the year.
California has already said it plans to sue the Trump administration over the move. The EV industry could face more speed bumps ahead in Trump’s “big, beautiful bill.”
