FSR - Why Rivian and Nikola Popped but Fisker Dropped
2023-04-17 14:41:14 ET
The entire electric vehicles industry got all shook up Monday morning -- and remains so as we head into the afternoon -- after the U.S. Departments of Energy and Treasury (rather than the Department of Transportation, as you might expect) basically told investors which car stocks will be winners and which ones will be losers going forward.
The biggest of the winners, it seems, will be General Motors (NYSE: GM) , which as Car and Driver reports today, "not only plans to build all its future EVs in North America but has announced numerous mineral-sourcing contracts and is setting up at least three battery plants as joint ventures with its longtime cell partner LG Energy Solutions." That checks all the boxes on the U.S. government's green energy wish list, and sets up GM to provide $7,500 tax credits to buyers basically all across its EV lineup going forward.
Ford and Tesla are making out pretty well today as well, with the government confirming that most of their vehicles will qualify for at least some taxpayer subsidies. (Both Ford and GM stocks are up nicely, while Tesla is down only a small fraction of a percent.) In contrast, no EVs from Rivian Automotive (NASDAQ: RIVN) , Nikola (NASDAQ: NKLA) , or Fisker (NYSE: FSR) made the cut for any IRS tax breaks. And yet, Rivian stock is up a solid 2% as of 1:45 p.m. ET today, and Nikola is gaining 3% (but Fisker is down 3.8%).
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Why Rivian and Nikola Popped, but Fisker Dropped