Lucid Group, Inc. LCID is one of several electric-vehicle stocks moving higher Tuesday. The sector may be reacting to new tariffs on Chinese EV imports.
What Happened: Lucid Group and other EV stocks appear to be getting a lift Tuesday following reports that President Joe Biden increased tariffs on Chinese imports of electric vehicles, solar cells, batteries, steel and aluminum to protect industries in the U.S. from unfair competition.
Biden is expected to quadruple tariffs on imported EVs from China from 25% to 100%. There will also be a 25% tariff on Chinese steel and aluminum imports and a 50% tariff on Chinese solar cells, according to CNBC.
"China is producing at a rate and with a trajectory that's far in excess of any plausible estimate of global demand," a senior administration official reportedly told CNBC.
"That is going to flood the global market with supply that undercuts our ability to build productive capacity at home and … leaves all of us across the world more vulnerable to economic coercion."
The Biden administration does not believe the tariffs will have any inflationary impact as they are not “across the board” and instead only target specific sectors.
Other stocks that appear to be benefitting from the news include Tesla, up 2.63%, and Rivian, up 2.84%, as well as U.S.-based EV battery companies.
Related Link: Rivian, Lucid, & Nikola Facing ‘EV Winter’ Challenge? Reportedly Struggling With Cost-Cutting Strategies To Boost Cash
LCID Price Action: Lucid shares were up 11.9%, trading at $3.14 at the time of publication, per Benzinga Pro.
Image: Courtesy of Lucid.
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