Electric vehicle stocks broke lower on Wednesday as investors evaluated the potential impact of Donald Trump winning the Presidency.

Chinese EV stocks led the declines in the sector. NIO (NYSE:NIO) was down 6.85% in premarket trading in the U.S., while XPeng (XPEV) fell 6.70% and Li Auto (LI) was down 7.40%. ZEEKR Intelligent Technology Holding Limited (ZK) turned 6.81% lower and Kandi Technologies Group (KNDI) shed 1.45%.

The threat of EV rebates and tax incentives being pulled back sent Rivian Automotive (RIVN) down 4.55% in early trading and Lucid Group (LCID) 2.15% lower.

Meanwhile, shares of Tesla (NASDAQ:TSLA) soared 14.74% as investors viewed the election results as favorable for the electric vehicle juggernaut.

Wedbush Securities Dan Ives noted that Tesla (TSLA) has the scale and scope that is unmatched in the EV industry, which could give the Austin-based company a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players such as BYD Company (OTCPK:BYDDF) and Nio (NIO) from entering the U.S. market. Notably, Tesla (TSLA) could also benefit from an accelerated timeline for its autonomous and FSD initiatives.

On the negative side for Tesla (TSLA), there could be implications over the next year with consumer demand if Trump and Musk are tied even closer together, per Ives. There is also a threat that an escalated trade and tariff war will hurt Tesla's (TSLA) sales in China, or be an overhang on the stock.