It's turning out to be a busy day in the stock market after election results have rolled in. Donald Trump's reelection has stocks in some sectors soaring and others dropping. But the electric vehicle (EV) sector is looking a bit more nuanced.

While EV start-up Rivian Automotive (NASDAQ: RIVN) shares were down about 9% in late morning trading, shares in sector-leader Tesla had spiked higher by about 13%. Today's drop in Rivian shares leaves the stock down nearly 60% year to date. Looking into the various crosscurrents among the EV names could prove helpful and potentially profitable for investors.

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EV tax credits are one big question

It's no secret that Tesla CEO Elon Musk was a big Donald Trump supporter. However, Trump could seek to change the existing rules that determine whether EV buyers qualify for an existing $7,500 tax credit or work to eliminate any such credit. That would seemingly hurt electric car sales.

Investors are thinking that could still be good for Tesla since it's already highly profitable. It could push its unprofitable competitors out of the market, limiting competition. Rivian, of course, isn't yet profitable. That helps explain today's market reaction.

But Rivian's trucks have mostly not qualified for the existing tax credit due to the high list prices. Where it could have a big impact, though, is with Rivian's upcoming lower-priced R2 and R3 platforms. The company is counting on higher sales volume with those new models due in 2026 and 2027, respectively.

Rivian should already have enough capital to reach the point where it's selling the new models. It has also been working to reduce production costs along the way. Any change in government policy might not negatively impact the company as much as investors seem to believe today. With shares now hovering near all-time lows, buying Rivian stock might be a risk some investors want to take.

Rivian is scheduled to provide its third-quarter update tomorrow. Investors should tune in to see if management opines on whether it sees meaningful headwinds coming or not.

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