**Trump's Potential Comeback: What It Means for Tesla, Rivian, and the EV Market**

The possibility of a second Trump term has already ruffled feathers in the electric vehicle (EV) market, impacting established players and startups differently. While Tesla appears to be positioned to navigate the potential shifts, smaller companies like Rivian and Lucid could be at significant risk.

Market reactions following the latest election news provide a glimpse into future dynamics. Tesla, benefiting from Elon Musk's open support and campaigning for Trump in key swing states, saw its shares skyrocket by 15%. In sharp contrast, Rivian and Lucid experienced significant drops in their stock values, falling by 5.3% and 8.3%, respectively.

According to BofA Securities analyst John Murphy, Rivian (RIVN) and Lucid (LCID) will likely face considerable challenges under a Trump presidency. These challenges are already reflected in their declining stock prices. In contrast, Tesla's existing profitability and its plans to introduce more affordable models should keep it relatively secure amid potential policy upheavals.

Trump's stance on EVs, characterized by intentions to dismantle the Environmental Protection Agency, rescind vehicle emissions standards, and impose heavy tariffs on foreign-made vehicles, signals a tougher road ahead for the broader EV industry. EV incentives such as purchase rebates and tax breaks, which are part of the current administration's Inflation Reduction Act, might also be at risk. However, with significant EV investments occurring in red states like South Carolina, Ohio, and Georgia, a complete rollback seems unlikely.

Wedbush analysts expressed concerns that the elimination of EV rebates and tax incentives would negatively impact startups like Rivian and Lucid. However, major players, including Tesla, Lucid, Rivian, and LG, have indicated their willingness to collaborate with Trump to sustain progress in EV technology.

Legacy automakers such as General Motors, Ford, and Stellantis stand to benefit the most from a Trump administration, as a reduction in regulatory pressure would allow them to maintain traditional internal combustion engine (ICE) portfolios without mandatory transitions to EVs. This sentiment was reflected in the market, with GM and Ford shares rising by 2.5% and 5.6%, respectively.

Trump's previous term showed his capability to modify trade agreements and labor costs, notably through the USMCA, which increased the cost of car production in Mexico. The resulting inflation was framed as a consequence of Democratic policies, although it was driven by the trade changes initiated during his administration.

Trump also plans to revoke California's ability to set its vehicle emissions rules if re-elected. This could counteract California's ambitious "Advanced Clean Cars II" regulations, which mandate that 35% of 2026 model-year vehicles be zero-emission, aiming for 100% by 2035.

The potential policy changes also have the American Trucking Association urging for more achievable emissions goals and automakers anticipating a rollback or freeze on Corporate Average Fuel Economy (CAFE) standards.

The ongoing shifts in the EV landscape highlight the complex interplay between politics, market dynamics, and technological advancements. As the situation evolves, all eyes remain on how the industry will adapt to these potential changes.