Tesla CEO Elon Musk is firmly on the side of former President Donald Trump politically, but even Musk himself is unsure what a Trump administration would mean for the electric car maker that pays him billions of dollars.
meanwhile Conference call with financial analysts Wells Fargo board member Colin Langan on Tuesday asked Musk to explain the impact of a Trump victory and potential economic collapse. $7,500 Federal Tax Credit for Electric Vehicles.
“It’s going to have some impact,” Musk said. “It’s going to be devastating for our competitors, and it’s going to hurt Tesla a little bit.”
The CEO also noted that President Trump’s promise to impose heavy tariffs on cars made in Mexico will force Tesla to pull back on investment in a factory in Monterrey that was due to open in 2026. “If that happens, we’ll have to wait and see how that plays out politically,” he said. Yesterday, Musk denied reports that he was pumping $45 million a month into the Trump campaign.
talk CNBC Before the financial results are announced, Dan Ives, technology analyst at Wedbush Securities He said that President Trump could be negative for the entire EV market because he thinks the EV market will be Inflation Control Law And with that Tax credits for electric vehicles and certain plug-in hybrids. A Democratic presidential candidate, Kamala Harris’ administration, could be a boon for the EV industry.
But Ives said Trump may be a better fit when it comes to the regulatory agenda needed to advance self-driving and autonomy, a key element of Tesla’s growth strategy.
“Will Musk go from being a lower profile under Biden to being more prominent under Trump?” Ives said. “That’s why Tesla is part of the Trump trade.”
Musk rejected the idea that regulators might frown on Tesla’s self-driving robot taxis, which don’t have steering wheels or pedals. Analysts asked Musk why regulatory risk isn’t an issue for Tesla when General Motors Co. has stopped making its steering-wheel-less Origin car and is instead building the Chevrolet Bolt. Part of this is down to regulations. Cruise Origin’s self-driving cars will need approval from the National Highway Traffic Safety Administration because they don’t have traditional manual controls like a steering wheel or pedals that are required by current safety regulations and are designed for cars with human drivers, not fully autonomous vehicles.
“The primary reason we’re switching from Origin to the Bolt is to eliminate regulatory risk,” GM CEO Mary Barra said. Reuters report.
“The real reason they stopped it is because GM can’t make it,” Musk said, adding that the company’s technology was “not up to par.” He said it was “misleading” to blame regulators.
GM executive director Jim Cain said: luck Musk is completely wrong.
“All of these statements are completely false,” said Cain, who heard Musk’s remarks on the earnings conference call. “The Origin vehicle faced numerous hurdles in obtaining certification, including the lack of a steering wheel or brake pedal and a unique seating layout that required an exemption from Federal Motor Vehicle Safety Regulations. Period.”
Cain said Cruise’s technology is improving every day thanks to how it leverages data sets with AI, “and to date, Cruise has driven over 5 million fully self-driving miles, and Tesla has driven none.”
Musk has an unshakeable belief that Tesla has the ability to solve the “autonomy” problem, and he believes that Tesla Reported Financial Results Net income fell 45%, marking the second consecutive quarter of slowing growth and the fourth straight quarter of declining quarterly profits. Auto industry data also shows Tesla’s popularity continues to decline in California, where sales fell 24% in the second quarter. Meanwhile, President Trump has pledged to end what he calls the “green new scam” and promised to repeal the “electric vehicle mandate” from day one.
Ives said that if self-driving is Tesla’s strategic future, the company might benefit from less regulation, which is more likely under Trump than Harris.
Ives said the “best thing about Sunday” for investors is how the company will impact the robotics market and the push toward self-driving and autonomy, which could ultimately lead to a $1 trillion or even $2 trillion valuation, he added.
