It will be a busy day on the stock market after the election results are announced. Donald Trump's re-election is causing stocks to soar in some sectors and fall in others. But in the area of ​​electric vehicles (EV) things are a little more nuanced.

When starting the electric vehicle Rivian Automotive (NASDAQ:RIVN) Shares were down about 9% in late morning trading, leading the industry Tesla was up about 13%. Today's drop in Rivian shares leaves the stock down nearly 60% year to date. Examining the various crosscurrents between EV names could prove helpful and potentially profitable for investors.

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It's no secret that Tesla CEO Elon Musk was a big supporter of Donald Trump. However, Trump could seek to change the existing rules that determine whether electric vehicle buyers are eligible for an existing $7,500 tax credit or advocate for eliminating such a credit. That would obviously hurt sales of electric cars.

Investors believe this could still be a good thing for Tesla since the company is already very profitable. It could drive its unprofitable competitors out of the market and limit competition. Of course, Rivian is not yet profitable. That explains today's market reaction.

However, due to high list prices, Rivian trucks are largely ineligible for the existing tax credit. However, there could be a big impact on Rivian's upcoming, cheaper R2 and R3 platforms. The company expects higher sales figures for the new models, which are scheduled to appear in 2026 and 2027.

Rivian should already have enough capital to sell the new models. At the same time, work was also being done to reduce production costs. A change in government policy may not have as negative an impact on the company as investors seem to believe today. With shares currently hovering near all-time lows, buying Rivian stock could be a risk some investors are willing to take.

Rivian is expected to release its third quarter update tomorrow. Investors should tune in to see if management has a view on whether or not it expects significant headwinds.

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