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The electric vehicle (EV) industry’s woes amplified last year after the Trump administration withdrew the $7,500 tax credit. The auto tariffs did not make things any better and put pressure on margins. For startup EV names, the tariffs meant a further increase in losses. This was a double blow for the U.S. EV industry, which was already battling slowing sales and massive production overcapacity, which ignited the price war.
Specifically, Lucid Group (LCID) stock fell 65% last year and continued its dismal run. The stock, which was perhaps the most hyped special purpose acquisition company (SPAC) merger in 2021, has fallen every year since then.
