Reasons why stocks of Rivian, Lucid, and ChargePoint surged on Monday

The trading week for electric vehicle (EV) stocks got off to an explosive start as shares of Rivian Automotive (NASDAQ: RIVN), Lucid Motors (NASDAQ: LCID), and ChargePoint Holdings (NYSE: CHPT) all moved higher on Monday. This surge in stock prices can be attributed to the Biden administration’s plan to quadruple tariffs on Chinese electric cars imported into the U.S.

Shares of Rivian and Lucid were up 12% and 6.8%, respectively, while ChargePoint saw an 11.4% increase in its stock price by 10:50 a.m. ET. The increase in tariffs on Chinese EVs from 25% to 100% by the U.S. government will effectively double the price of these vehicles in the American market.

Although Chinese EVs do not make up a significant portion of the U.S. automotive market, this move by the Biden administration will likely ensure that they remain a niche segment. This development will eliminate the threat of competition from low-cost Chinese EVs for U.S. companies like Rivian and Lucid, potentially easing the pressure on them to lower the prices of their electric trucks and cars.

Investors are reacting logically to this news, with many seeing it as a positive indicator for Rivian and Lucid stocks. However, the implications for ChargePoint are less clear. The increased tariffs may hinder the growth of their business as demand for charging services could be affected by the absence of more affordable Chinese EVs in the market.

Overall, investors who are buying ChargePoint stock based on the tariffs news may want to reconsider their strategy. The removal of Chinese EVs from the market may not be beneficial for ChargePoint’s growth prospects.

Before investing in ChargePoint or any other stock, it is essential to consider all factors influencing the market. The Motley Fool Stock Advisor team has identified the top 10 stocks for investors to buy now, none of which include ChargePoint. This research aims to help investors make informed decisions and potentially achieve significant returns.

In conclusion, the recent surge in EV stocks like Rivian, Lucid, and ChargePoint can be attributed to the Biden administration’s decision to increase tariffs on Chinese electric cars. While this move may benefit some companies, it could have adverse effects on others, making it essential for investors to carefully assess the implications before making investment decisions.

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