Tesla shares have increased from the presidential elections, earning almost half a billion dollars in market value. Even after a weak financial report, investors are still sure that Donald Trump’s policies will benefit Tesla more than they will damage.
Optimism around deregulation and business growth
With Trump pressing to delay regulations and adjust commercial policies, investors believe that Tesla can win. “This is a game change for Tesla and Musk,” said Dan Iives, Wedbush Securities analyst. He pointed out that Musk seemed very confident during the last call to the investor.
Musk has repeatedly challenged expectations, transforming Tesla into the most valuable car manufacturer while becoming the richest individual in the world. Its last plans include implementing Tesla robots and launching autonomous taxis, potentially already in June in Austin, Texas.
How Trump’s policies could shape Tesla’s future
The Trump administration is expected to have a great impact on Tesla. The Secretary of Transportation, Sean Duffy, has pledged to simplify federal rules on autonomous technology, replacing the inconsistent state regulations that Musk has criticized. In addition, Trump has facilitated his position on China, opting for a 10% tariff instead of 60% that he had initially threatened. Since China is a key market for Tesla, this decision could work in favor of the company.
However, some of Trump’s policies could damage Tesla. A 25% tariff on the imports of Canada and Mexico can increase the production costs of Tesla. In addition, Trump plans to eliminate the federal tax of $ 7,500 for electric vehicles and loosen the emission regulations, simulated that could weaken the capacity of Tesla to benefit from the sale of regulatory credits. Tesla won $ 692 million from these credits in the last quarter of 2024, an increase of 60% compared to the previous year.
Regulatory scrutiny and financial challenges
Tesla continues to face regulatory challenges. The National Highway Traffic Safety Administration (NHTSA) is investigating the complete self -control technology (FSD) of Tesla (FSD) after multiple accidents in low visibility conditions. Although Duffy has assured legislators that investigations will remain independent, it is not clear how Tesla will handle regulatory obstacles.
Tesla’s financial performance has also raised concerns. The company reported its first decrease in sales in more than a decade, since BMW, Volkswagen and Byd competition in China increases. Despite the lack of income and expectations of profits, Tesla’s actions continue to increase, disconcerting analysts.
The political postures of musk stir the controversy
Musk’s political statements are drawing attention. In Europe, a key market for Tesla, has expressed support for extreme right groups and criticized the Prime Minister of the United Kingdom Keir Starmer. His comments have caused a violent reaction, with protests outside the Berlin factory in Tesla and the demonstrations in Milan where activists compared it with historical figures.
These controversies could damage Tesla’s reputation and affect their regulatory approvals in Europe, particularly with respect to autonomous technology. “How many Buyers of Tesla share Musk’s opinions?” Felipe Muñoz, analyst at Jato Dynamics. “Risking Consumer Trust is not an intelligent commercial movement.”
The Tesla market value and future prospects
Despite the risks, Tesla’s market value has shot at $ 1.3 billion, surpassing car manufacturers such as General Motors, BMW and Ford combined. Musk insists that the company is still undervalued, imagining Tesla as the most valuable company in the world, surpassing Microsoft, Apple and Nvidia.
IVES of Wedbush believes that Musk’s alignment with Trump is a decisive moment. “Musk’s bet on Trump is monumental,” he said. “Billions could be worth it, but if Tesla can maintain this impulse is still uncertain.”
Also read: Tesla investors expect the EV model to increase growth in 2025
(Tagstotranslate) Tesla stock emerges 2024
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