Tesla rises 4% as DeSantis pledges to legalize flying roadster in Florida; Rivian and Lucid Slip

A pledge from Florida’s governor is to kill an electric vehicle maker while its smaller rivals withdraw. Tesla (NASDAQ: TSLA | TSLA Price Prediction) shares are up 4% at $367.59 in afternoon trading after Florida Governor Ron DeSantis promised to legalize the company’s flying Roadster in his state.

In the meantime, Rivian Automobile (NASDAQ: RIVN) shares are down 0.9% at $12.31, well behind Tesla shares’ gain, and Lucide Group (NASDAQ:LCID) is down 1.12% at $3.10.

The divergence indicates a reaction to Roadster stock that is specific to Tesla, and Rivian and Lucid are small, purely specialized EV makers that are not yet profitable.

DeSantis promises Florida will make Roadster legal

Florida Gov. Ron DeSantis lashed out at X. He said his state would legalize Tesla’s flying Roadster, writing, “We’ll make sure it’s legal.” His comments follow Tesla’s reveal of the long-delayed Roadster last week.

In this event, a version of the Roadster equipped with air tanks and thrusters took off from a ramp, flew briefly, and landed on its wheels. The protest turned a sports car that Tesla had promised for years into a showcase of its engineering ambitions, and the governor’s pledge now adds political momentum.

Tesla shares are also rising alongside a broad rebound in tech names, so Roadster stock is one of two forces behind the move. Large-cap technology is strong, with the Invesco QQQ Trust (NASDAQ: QQQ) up 2%. This gap with Tesla’s stock suggests that the Roadster’s commitment gives Tesla an additional boost on top of the tech rally.

Tesla moves away from Rivian and Lucid

THE Global X Autonomous and Electric Vehicle ETF (NASDAQ:DRIV) is up 1%, less than Tesla shares. Its portfolio spans automakers, chipmakers, battery suppliers and autonomy software companies, reducing the effect of any single stock on any single company.

Rivian builds the R1T pickup, R1S SUV and commercial electric delivery vans, and is launching the R2 mid-size SUV to reach a broader market. Lucid designs the Air sedan and the Gravity SUV, assembles them in Arizona while preparing production at a second factory in Saudi Arabia. A software and services section, including a joint venture with Volkswagen Group, gives Rivian another revenue stream.

Closer to the governor’s home state, Tesla operates its Robotaxi service in several U.S. metros, including unsupervised routes in Miami, Orlando and Tampa. This presence in Florida lends additional weight to the governor’s approval for Tesla. Cybercab production has also begun at Tesla’s Gigafactory in Texas, and lines for the Optimus humanoid robot are being installed.

Roadster hype meets regulatory reality

Federal regulators decide whether a vehicle can fly, so Florida’s approval carries mostly symbolic weight, and production is not expected for years while Tesla has not announced pricing for the flying version.

Optimists see the Roadster as proof that Tesla can still generate excitement around new hardware. However, a vehicle years out of production and without federal approval might add little to Tesla’s near-term bottom line. Tesla’s growth talk already relies on Full Self-Driving software, Megapack batteries and the Robotaxi service, leaving the Roadster to its advantage.

Washington holds the key to the flying roadster

The next test for Tesla is whether the Flying Roadster ever gains federal approval. Shareholders can watch to see if Florida officials will provide details on how the state intends to honor the governor’s commitment.

A rally in Tesla shares as Rivian and Lucid shares fall shows Roadster stock lifting just one name in the EV group. Traders may prefer to keep their exposure to TSLA stock reasonably low. It’s wise to do so until the path to production of the Flying Roadster is resolved, the kind of fenced-in speculation we’ve outlined in a free guide to small-stakes betting.

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