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Tesla (TSLA) Will Weather the Trump Storm and Be Stronger for It

Austin Smith

Published: December 13, 2024 8:58 am

24/7 Wall St. Key Points:

• Eliminating EV tax incentives could help Tesla Inc. (NASDAQ: TSLA) since its strong market presence and profitability let it outlast smaller EV rivals dependent on these subsidies.
• Without the credits, smaller EV producers and legacy companies like Ford Motor Co. (NYSE: F) could have great difficulties, raising Tesla’s 49% U.S. EV market share even higher.
• Close ties between Tesla and government-funded initiatives like SpaceX raise questions about apparent conflicts of interest, which would draw further scrutiny under a new government.
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Transcript:

[00:00:00] Douglas McIntyre: Donald Trump is good for Tesla. And here’s why. The conventional wisdom is, is that the new administration will get rid of the EV tax credit. On some EVs, that’s 7, 500.

[00:00:15] Douglas McIntyre: Some cases, it’s 3, 750. It depends on they’re assembled where the parts come from.

[00:00:23] Douglas McIntyre: If the new administration kills that, I would think it would be bad for Tesla. But the theory is, is that Tesla will be able to weather this storm and it will wash the weaker companies out. There’s Tesla, Tesla can live with this, but it

[00:00:44] Douglas McIntyre: that it’s 49 percent market share in the United States will actually rise because the small EV companies won’t be able to live without the credit, which they need to get buyers. Ford won’t be able to live without it to get EV buyers. So that’s the theory is, that Elon Musk is actually helped by the 7, 500 EV tax credit going away.

[00:01:12] Lee Jackson: Yeah, and I think that, you know, for, for both, I think for, for government workers and everybody that’s involved, both, both Musk and Ramaswamy coming to the DOJ department or whatever, which is, has a finite endpoint, there will be a lot of changes and it’s going to have to be like that because Musk is going to be, people are going to start looking at him and going like, wait a minute, wait a minute, if anything goes your way for Tesla or SpaceX and it’s government related, isn’t that a conflict of interest?

[00:01:45] Lee Jackson: So I think you’re right. I think everything’s going to have to be played right down the fairway. You know, no, no, nothing that benefits Tesla. And, because I, I’ve seen a lot of that, a lot of people questioning that and, and you’re right when that goes away and, and other, you know, other green technology, kind of boondoggles for lack of a better word, they’re going to go away as well.