Core Insights - Experts are warning that electric vehicle stocks such as Rivian, Lucid Group, and Tesla will face significant challenges due to the loss of automotive regulatory credits by 2026, which previously provided billions in profit [1] - Demand for electric vehicles is projected to decline sharply in 2026, with sales expected to drop significantly in the last quarter of 2025 and remain sluggish thereafter [2][6] - The expiration of U.S. tax credits for EV purchases at the end of September has led to a rush in consumer purchases, which may result in a demand slump in the following quarters [3][5] Industry Impact - The elimination of tax credits previously reduced the cost of EVs by up to $7,500, making them more affordable for consumers, with a significant portion of buyers preferring vehicles under $50,000 [4] - Historical data from other countries shows that demand for EVs fell sharply when subsidies were reduced or eliminated, indicating a potential similar trend in the U.S. market [5] Company-Specific Analysis - Despite the anticipated challenges, long-term EV adoption is expected to rise, suggesting that companies like Rivian, Tesla, and Lucid should not be abandoned by investors [7] - Tesla is positioned to be less affected by the loss of tax credits due to its reliable access to capital, allowing it to continue investing in growth opportunities such as robotaxis and a more affordable $30,000 model [8]