Investing

Trump Could Direct the Government to Buy Elon's Teslas (TSLA)

Austin Smith

Published: November 14, 2024 9:26 am

Key Points

• Following Trump’s election win, Tesla Inc. (NASDAQ: TSLA) stock rose by 20%, while Rivian (NASDAQ: RIVN) and Lucid (NASDAQ: LCID) dropped by 8% to 10%.
• Tesla might have profited from Trump and Musk’s friendship even as Rivian and Lucid faltered.
• As much as Tesla could benefit, the Next Nvidia could do even better. Click here to see why.

Watch the Video:

Transcript:

[00:00:00] Doug: So this is what happens and I don’t get it. Trump gets elected the next day. Yes, he did. Tesla soars 20%. Now I know that he and the president are our friends, but the tiny EV guys, Lucid and Rivian fall between eight and 10%. Now they, they recovered some the next day, but the question has been asked a number of times, what could the president do to help Musk?

[00:00:33] Doug: Because it appears that he’s the president would want to take tax credits away, you know, but that that you say, well, but that would hurt Tesla. It seems to me, though, that it’s just the fact that Trump and Musk are friends and therefore it hurts. Rivian and lucid. I mean, you tell me,

[00:00:57] Lee: well, I think you’re exactly right.

[00:00:58] Lee: And you would think that the tax credits going away would be an issue, but you know, it, it’s pretty obvious that, um, and I suspect this was the case that there had to be a short squeeze as well, you know, with, with people betting like, okay, Trump’s not going to win. And his boy, Elon Musk is going to go down in flames.

[00:01:19] Lee: And so will Tesla, but that wasn’t the case.

[00:01:24] Doug: Well, I’m going to, this is speculation, but I’m going to go even further than that. The United States government across the board is trying to move from fossil fuel powered cars to anything else. If they’ll run on water, they’re happy, but you know, it’s going on with the postal system and you know, the government does buy tens and tens of thousands of cars.

[00:01:46] Doug: So there’s nothing that keeps the government quite frankly, as far as I know, from saying But we’re going to buy EVs and they’re going to be Tesla’s, you know, suddenly must cast tens of thousands of sales a year because. Trump says, I want you to buy Tesla EVs for everybody who works for the government

[00:02:06] Lee: and, or, you know, the government for, like you said, whether it’s the postal service or whatever, uh, I want to Tesla EVs to, you know, like the, like the ones, Amazon’s buying, you know, for deliveries, that could be the same thing.

[00:02:21] Lee: Yeah.

[00:02:23] Doug: Anyway, we’ll never know the answer to this. This is a, this is the conspiracy theory part of our show. Is when we ask ourselves, why after the election did two EV companies drop and one went up? So that’s, that’s all we can say.

[00:02:39] Lee: Well, and just everything was so staggering because the mandate is, you know, pretty huge.

[00:02:45] Lee: You know, when, when you win 76 million votes and you win all of the electoral college as well. So you win the popular vote and that, uh, and the electoral colleges that, A lot of things for business seems to have fallen in place, and it certainly is falling into place for Elon Musk, who, whose net worth jumped from 265 billion to 285 billion in a day, making him even more of the richest man in the world.

[00:03:16] Doug: I know.