Rivian Automotive (NASDAQ: RIVN) stock is gaining ground in Friday’s trading. The electric vehicle (EV) specialist’s share price was up 3.2% as of 2 p.m. ET and had been up as much as 5.6% earlier in the session.

Rivian’s valuation is climbing higher following recent comments made by CEO RJ Scaringe about the company’s strategy and outlook under the new Trump administration. While the canceling of a Biden-era executive order on EVs and potential canceling of rebate and tax credits could create some headwinds, Scaringe thinks that these challenges will prove be less significant than many people are expecting.

In a recently published interview with Business Insider, Scaringe acknowledged that Rivian is facing increased uncertainty now that Trump has returned to the White House. On the other hand, the CEO said he wasn’t overly worried about the potential removal of EV subsidies and said there were ways that Rivian could adapt to shifting conditions. Of particular note, he said that the removal of tax subsidies could cause his company to offer vehicles at lower price points.

Scaringe also stressed the long-term outlook for the auto market being more significant and important than changes in short-term operating conditions. The CEO still sees the overall industry shifting to EVs over the long term, and his company is positioning to score wins as part of the transition.

Rivian is scheduled to publish its fourth-quarter results and host a conference call after the market closes on Feb. 20. The company has already reported that it produced 49,476 vehicles and delivered 52,000 vehicles in the period, but the upcoming report will give investors a closer look at sales, margins, and earnings in the quarter.

Rivian now has a market capitalization of roughly $13.2 billion and is valued at approximately 2.6 times this year’s expected sales. With overall demand softening in the EV market, the business has seen sales dip. The company still managed to meet management’s targets for between 47,000 and 49,000 vehicles produced and between 50,500 and 52,000 vehicles delivered last year, but a weaker demand backdrop for the broader industry could mean that Rivian’s shift into profitability could be pushed further out.

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