Trade Cautiously - Trump To End EV Mandate on Day 1

Trump in today’s RNC speech announced he’s ending the Biden EV mandate on his first day in office and returning the US to its main dominance in oil reserves and the automotive industry.

The Biden EV Mandate stated that 2/3 of all US cars and trucks need to be electric vehicles; replacing gasoline vehicles with EV-powered vehicles in 8 years (2030). In tandem, a new zero-emission rule has been escalated to be 100% emission-free for new vehicles by 2035.

These policies are on the line, vowed by Trump if he takes office.

On the bear’s side, a direct impact will be administered to the sales of EV cars accross the landscape with subsidies removed and EV tariffs reinstated. This is a hard blow to the initially projected 80% EV cars on the road by 2035. Besides, EV cars were known for their lofty price tags despite requiring less labour which returns EV manufacturers to a tight price war with the already thriving oil-based automotive industry.

At the time of writing, there’s an intense pull between both calls and puts as investors’ opinions are divided and confirmation needs to be observed on the market open.

Let the market decide.

Personally, I have shorts from $270 and looking to cover at $220-$230 (the lower band from this emerging bull flag) as the market struggles before buying into ER with a target of $280.