Here's Why Lordstown Motors Stock Is Moving

Lordstown Motors Corp RIDE shares are trading higher by 7.05% to $1.54 Friday afternoon amid strength in EV stocks after the Treasury Department announced it is raising the price cap for EV tax credits to $80,000.

Treasury Price Cap For EV Tax Credits

The U.S. Treasury Department updated the vehicle classification standard used to determine the applicable Manufacturer Suggested Retail Price (MSRP) limitation for clean vehicle tax credits available under the Inflation Reduction Act.

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On December 29, 2022, the Treasury says it published a notice of intent to propose regulations containing information for consumers and manufacturers in advance of January 1, 2023, effective date of changes to the clean vehicle credit under section 30D of the tax code.

The notice of intent provided an expected vehicle classification standard, based on existing EPA CAFE standards, for the purpose of determining whether the vehicle is a sedan, SUV, or other type of vehicle and subject to the $55,000 or $80,000 MSRP limitation.

The Treasury says this change will allow crossover vehicles that share similar features to be treated consistently.

The Treasury also says all vehicles that were eligible under the MSRP limitations prior to today's notice remain eligible under the updated standard.

According to data from Benzinga Pro, RIDE has a 52-week high of $3.79 and a 52-week low of $0.87.