American electric vehicle makers Rivian and Lucid rose as much as 4.6% and 8.8%, respectively, on Thursday.

Lawmakers would eliminate a $7,500 tax credit for households that buy or lease new EVs, as well as a $4,000 credit for consumers who purchase used EVs.

Tesla, the electric vehicle maker led by Elon Musk, saw global sales drop 13.5%, marking the second consecutive quarter with double-digit declines.

Wednesday, after the electric-vehicle giant allayed investor fears by reporting second-quarter deliveries that were pretty close to expectations. Tomi Kilgore is MarketWatch's deputy investing and corporate news editor and is based in New York.

Tesla is headed for another year of shrinking sales after it posted a second straight drop in quarterly deliveries, dragged down by CEO Elon Musk's right-wing political stances and an aging vehicle line-up that has turned off some buyers.

Tesla shares ended higher on Wednesday even as the latest delivery numbers missed Wall Street estimates, indicating that investors are now fully embracing CEO Elon Musk’s broader vision that extends beyond just selling cars.