Why is Wall Street so vulnerable to clear groups? There is one important reason.


Some Electric car inventory We have received a huge boost in recent weeks about our enthusiasm for Robotaxis’ promises. Tesla Last month we launched the Robotaxi pilot program in Austin, Texas. Meid Group (NASDAQ: LCID)on the other hand, I recently became a partner Uber Technology It will deliver 20,000 self-driving vehicles with $300 million in cash injections.

But not all analysts are bullish. For example, Jim Cramer of CNBC recently questioned the value of Lucid’s deal with Uber. Seven other leading Wall Street analysts reaffirmed their price targets for Midd stocks this month. Predict everyone’s sharing autumn Value for the next 12 months.

Why is Wall Street still weak? There is one obvious reason.

Ark Invest CEO Cathie Wood believes Robotaxis will be $10 trillion in long-term. It’s thrilling investors.

However, for the next 12-24 months, most EV makers are in pain. This is because the federal tax credit for EVs is set to expire in September this year, effectively making $7,500 more expensive when you buy a new EV. The exact impact remains unknown, but this shift should reduce growth in significantly lower demand. Meanwhile, federal vehicle regulations credits are set to lose value considering non-compliance fines It has been eliminated. Lucid has earned more than $200 million through these programs. Also, given the remainder of many state and international programs, we will not lose access to this entire source of profit, but the economic impact is sudden and meaningful.

Hundreds of cars ready for export.
Image source: Getty Images.

All EV manufacturers are affected by these regulatory changes. LivianTesla, and clear. EV sales for the second quarter of 2025 fell 6.3% year-on-year. Given the reduced incentives, these declines could either persist or even accelerate.

Lucid’s Robotaxi opportunities remain favorable long term. However, analysts are worried about next year, two or two years with regard to declining sales and profit growth.

Consider this before purchasing stock at Lucid Group.

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Ryan Vanzo There is no position in any of the stocks mentioned. Motley Fool has a job and recommends Tesla and Uber technology. To Motley’s fool Disclosure Policy.

Why is Wall Street so vulnerable to clear groups? There is one important reason. Originally published by The Motley Fool

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