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 ( VWAGY 0.89%), which closed earlier this week, should help insulate Rivian from near-term demand shocks in the U.S. market.

Shares of US automakers fell after Reuters reported President-elect Donald Trump plans to eliminate the $7,500 consumer tax credit for electric-vehicle purchases.