The Zacks Domestic Auto industry faces a tough road ahead as tariffs on imported vehicles and key auto parts are expected to disrupt supply chains and dampen consumer demand. New-vehicle sales slowed in May. Several auto biggies have withdrawn guidance amid tariff woes. At the same time, affordability issues and rising incentives are squeezing profit margins, while inflation and tariffs are complicating pricing strategies. The electric vehicle (EV) segment is growing, though at a more measured pace amid policy and demand shifts. That said, two stocks — Rivian Automotive ( RIVN - Free Report ) and Lucid Group ( LCID - Free Report ) — are relatively better positioned. They are leaning on new model launches, improved cost structure, supply chain localization and strong financial backing to stay competitive.