Shares of Rivian Automotive (NASDAQ: RIVN) are down for a second day on Friday after Reuters reported that the incoming Trump administration plans to end the electric vehicle (EV) tax credit program.

As of 10:30 a.m. ET, Rivian’s shares were down about 4.7% from Thursday’s closing price.

Broad concerns for the U.S. EV market if the tax credit program ends

Rivian’s shares closed down over 14% on Thursday after Reuters reported that President-elect Donald Trump’s transition team plans to end the consumer tax credit for EV purchases as part of a broader tax-reform plan.

The credits provide an incentive of up to $7,500 to buyers of certain electric vehicles. The credit program is intended to allow automakers some breathing room to ramp up production of EVs by passing on more of their early costs to consumers.

Notably, according to Reuters, representatives of Tesla, the largest U.S. EV maker, told a Trump transition committee that the company supports ending the credits. Tesla is arguably a mature EV maker and likely doesn’t need the added support for its costs, but automakers that are still losing money as they ramp up EV production, including legacy giants like Ford Motor Company (NYSE: F) as well as recent start-ups like Rivian and Lucid (NASDAQ: LCID), could be hurt by the end of the tax credit program.

Rivian has some downside protection, but EV investors should worry

An end to U.S. EV tax credits is unlikely to doom Rivian altogether. Its $5.8 billion deal to share technology with German auto giant Volkswagen (OTC: VWAGY), which closed earlier this week, should help insulate Rivian from near-term demand shocks in the U.S. market.

But the plan to end the tax credits is a concerning development for investors in the EV space more broadly, and it’s no surprise that Rivian’s shares have lost value since the news became public.

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John Rosevear has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.