Just when markets thought that the electric vehicle bubble popped, frantic buyers emerged. Early investors who bought Rivian (RIVN) and Lucid (LCID) will not get their money back. Conversely, traders will profit.
On Monday, Lucid gained nearly 11%, thanks to China’s economic policies. The country will adopt an appropriately loose monetary policy in 2025. Its fiscal policies are primarily targeting economic growth.
China’s multi-quarter economic slump will likely worsen without those actions. It is bracing for Trump’s punitive tariffs to hurt its EV business. In response to its announcement, RIVN and LCID stock rallied.
Conservative investors may bet against the EV trend. In the U.S. the incoming Republican leadership will cancel EV subsidies and tax credits. Investors should consider automotive firms that have hybrid vehicles. That includes Hyundai (HYMTF), BYD Company (BYDDF), and Ford Motor (F).
In 2025, expect Tesla (TSLA) to emerge as the strongest EV firm. Shares traded at a three-year high of nearly $405 before closing at $389.79. The company will sustain profit margins in EVs while competitors lose more money. In addition, Tesla diversified into the robotics space. Optimus may potentially automate Tesla EV manufacturing.
Tesla also has CEO Elon Musk investing in xAI. Expect the firm to leverage AI for full self-driving and powering the Cyber cab.
