What Happened?
A number of stocks fell in the afternoon session after the Trump administration announced a new 25% tariff on imported trucks.
President Trump announced via his Truth Social platform that a 25% tariff will be levied on all medium and heavy-duty trucks imported into the United States, effective November 1st, 2025. This move is poised to have a significant impact on truck manufacturers, particularly those based in neighboring countries that export to the U.S. The new tariff could increase costs for foreign manufacturers, potentially altering the competitive landscape within the heavy-vehicle industry. Investors are now watching to see how this will affect supply chains, pricing, and the stock performance of both domestic and international truck makers.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Marine Transportation company Kirby (NYSE: KEX) fell 1.9%. Is now the time to buy Kirby? Access our full analysis report here, it’s free for active Edge members.
- Automobile Manufacturing company Lucid (NASDAQ: LCID) fell 9.3%. Is now the time to buy Lucid? Access our full analysis report here, it’s free for active Edge members.
- Ground Transportation company Universal Logistics (NASDAQ: ULH) fell 5.1%. Is now the time to buy Universal Logistics? Access our full analysis report here, it’s free for active Edge members.
- Marine Transportation company Scorpio Tankers (NYSE: STNG) fell 3.6%. Is now the time to buy Scorpio Tankers? Access our full analysis report here, it’s free for active Edge members.
- Ground Transportation company Ryder (NYSE: R) fell 4%. Is now the time to buy Ryder? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Lucid (LCID)
Lucid’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 2.6% on the news that a weaker-than-expected U.S. consumer confidence report for September sparked concerns about the economic outlook.
The Conference Board's Consumer Confidence Index dropped to 94.2, its lowest reading since April. This decline was driven by a more pessimistic view of both current and future conditions. The Present Situation Index, which assesses current business and labor market conditions, fell by 7.0 points. More critically, the Expectations Index, a gauge of the short-term outlook, also decreased. This index has remained below 80 since February 2025, a level that historically signals a potential recession on the horizon. The weakening confidence reflects consumers' growing concerns about the labor market, which could translate to reduced spending and broader economic slowing.
Lucid is down 28.5% since the beginning of the year, and at $21.66 per share, it is trading 37.7% below its 52-week high of $34.80 from February 2025. Investors who bought $1,000 worth of Lucid’s shares 5 years ago would now be looking at an investment worth $223.11.
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