Ford Motor Company ( F ) stock is trading higher on Tuesday, among other stocks in the automobile sector, after President Donald Trump revoked former President Joe Biden‘s electric vehicle mandate.

What To Know: According to Reuters, Trump reversed an executive order that aimed for electric vehicles to account for half of all new car sales in the United States by 2030. Notably, the target was not legally binding.

Furthermore, Trump, in the executive order, put a stop to the distribution of money from a five billion dollar fund for electric vehicle charging stations. He also advocated for eliminating a rule that allowed states to implement stricter zero-emission vehicle standards by 2035

California, along with 11 other states, has implemented rules requiring the end of gasoline-only vehicle sales by 2035.

Additionally, Trump intends to instruct the Environmental Protection Agency to review regulations requiring automakers to meet stricter emissions standards by selling 30% to 56% electric vehicles by 2032, along with related rules set by the U.S. Department of Transportation.

Lastly, Trump has previously stated he may seek to eliminate the $7,500 tax credit for consumers purchasing electric vehicles.

Automobile-related stocks may be rising as Trump’s orders give automakers more flexibility in production planning. Investors might also be anticipating reduced financial pressure on companies to accelerate electric vehicle production, as regulatory targets and incentives could be loosened.

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F Price Action: At the time of writing, Ford stock is trading 1.47% higher at $10.34, according to data from Benzinga Pro.

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