Protectionism and EVs: Impact of Tariffs on Rivian, QuantumScape, and Blink Charging Stocks

Wednesday, 22 May 2024, 18:04

The market cheered protectionist measures today, leading to a surge in shares of electric vehicle companies and suppliers following tariff announcements. While tariffs aim to shield U.S. automakers and boost domestic supply, concerns remain about the imbalance of supply and demand in the EV market. Despite the tariff implications, uncertainties persist over long-term profitability for companies like Rivian, QuantumScape, and Blink Charging.
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Protectionism and EVs: Impact of Tariffs on Rivian, QuantumScape, and Blink Charging Stocks

Protectionism and EVs

The U.S. government announced 100% tariffs on Chinese EV imports starting Aug. 1, impacting companies like Rivian seeking to bolster domestic supply.

  • Batteries Tariffs: Batteries face 7-25% tariffs, potentially affecting manufacturers and favoring QuantumScape's U.S. demand.
  • Blink Charging Update: Mitsubishi UFJ Asset Management's stake increase may not alleviate Blink Charging's losses.

Will tariffs save the U.S. EV market?

Tariffs aim to defend U.S. automakers; however, supply concerns persist amid growing competition and declining margins in the EV market.

  1. Supply Challenges: Equinox EV entry by General Motors poses competition for Rivian, while QuantumScape's battery differs, highlighting supply diversification.
  2. Profitability Concerns: Tariffs may not ensure long-term profitability for Rivian, QuantumScape, or Blink Charging.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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