Key Points:

• Lucid (NASDAQ: LCID) may suffer more than competitors if the EV tax credit disappears
• Volkswagen’s investment in Rivian (NASDAQ: RIVN) gives access to intellectual property and software, buoying Rivian’s prospects at the same time
• Tesla (NASDAQ: TSLA) may keep its position at EV leader because of Elon Musk’s impact, and newly elevated role with Trump’s administration
• Also: while Lucid continues to falter ‘The Next Nvidia’ stocks are set to soar in 2025. Read more about why.

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Transcript:

[00:00:00] Doug: So we’re looking at the EV tax credit. There’s a pretty safe bet that in the Trump administration, it goes away. Yep, um, very hard to say among the EV companies if there are any winners because of that. I think Musk relationship with the president probably means that somehow Tesla will be a winner. Um, Rivian got a slug of money because of Volkswagen.

[00:00:25] Doug: That’s the total is 5. 8 billion between money going into Rivian and the new VW JV. They bought themselves some time but the stock got hit. Okay. It got hit on the, um, speculation that the EV tax credit would go away. The company that’s a wipeout is Lucid. It’s small. It’s a few thousand cars a year.

[00:00:51] Doug: They’re 85, 000 cars without the tax credit. It’s very hard. They’re doomed like that. They are doomed. They’ve lost every advantage that the, tax credit was all they had left. So I mean, if I were, I would get rid of Lucid. If you’ve got any, get out.

[00:01:13] Lee: Yeah. And unless, and there’s not really a bigger player in the world than Volkswagen in terms of reach and product lines.

[00:01:24] Lee: And I don’t know who could come in and help them out. another luxury car maker. Well, Volkswagen owns most of them. I mean, Stellantis owns some and that’s the extent of it.

[00:01:36] Doug: Yeah. You’re not going to see Ford (NYSE: F) or GM (NYSE: GM). Cause look, The VW trade is not that they think that they’re going to see a lot of Rivian sales is they want access to the intellectual property,

[00:01:47] Lee: Right.

[00:01:48] Doug: They want access to the software. They want access to the systems because they’ve done a horrible job doing it themselves. So I don’t know if they care how that does, but if you look across the board right now, Lucid’s got a problem. They don’t have a market outside the United States because where are they going to go to China?

[00:02:08] Doug: Basically, you go to China, you get slaughtered in the United States, you get slaughtered in China.

[00:02:13] Lee: Oh, absolutely. And, the Chinese market is saturated anyway.

[00:02:19] Doug: Anyway, last, I mean, my view on this is that’s a penny stock. I wouldn’t touch it.

[00:02:24] Lee: No, I wouldn’t touch it either. And again, it’s more likely a donut than in anything else in the next couple of years, if they can make it through next year, I would be somewhat surprised.

[00:02:35] Lee: So would I.

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