a Tesla Inc. (Nasdaq:TSLA) Bear on Wednesday Republican candidate for second term Donald Trump Negative for CEO Elon Musk and his electric vehicle giant.
Terrible for Tesla: The managing director of Stanfill Capital said Musk is the target of multiple Justice Department investigations. Mark Spiegel“He’s clearly engaged in at least some fraudulent activity,” he said, adding that the billionaire has been in trouble with the Justice Department.
do not miss it:
The portfolio manager also said a second term for Trump would likely be bad for Tesla. “There’s no question that from a business perspective, a Trump-Vance administration would be the worst thing for Tesla,” he said.
Spiegel noted that President Trump has repeatedly said he would repeal the EV mandate and the so-called anti-inflation law, which he said would mean Tesla would no longer be profitable. If Tesla makes $3,000 a car and the $7,500 tax credit for EVs is eliminated, it may be forced to raise prices, which in turn would stifle demand, he added.
About 70% of EV buyers are Democrats, but with Musk’s full support of Trump and his funding of Republican campaigns, Spiegel said very few Democrats are willing to buy a Tesla right now. Musk has “completely alienated most of that buyer base,” he said, adding that the situation is the same in Europe. The European equivalent of Democrats, liberal progressives, also wouldn’t buy a Tesla, he said.
trend: Commercial real estate has historically outperformed the stock market. The platform allows individuals to invest in commercial real estate with as little as $5,000 and earn a target yield of 12%.
Spiegel also expects Trump to repeal the EV mandate, which would mean automakers would no longer be forced to sell a certain number of EVs to avoid fines. “If OEMs no longer have to push EVs on people, Tesla could gain more market share, but the market would shrink, especially since alienating 70% of its user base and adding $7,500 to a car means fewer buyers.”
He said that if the EV mandate is repealed, the regulatory credit with 100% gross margins may no longer flow to Tesla.
Also read: Rory McIlroy’s Florida mansion now worth $22 million, double since 2017 — How to start investing in real estate with just $100
Why is this important: Tesla has been through a long period of weak fundamentals as demand slumped due to macroeconomic uncertainty and slowing EV adoption, and the strategy the company adopted to circumvent the headwinds — price cuts — has resulted in lower profit margins.
Incidentally, Musk recently praised the senator. J.D. Vance After the senator (R-Ohio) was selected as Trump’s running mate despite his anti-EV stance, the billionaire said removing the subsidies would only help Tesla, a sentiment echoed by Wedbush’s CEO. Daniel Ives In a note from last week. “A Trump presidency would be a net negative for the EV industry. “EV rebates and tax incentives could be rolled back, but we see this as a potential positive for Tesla,” he said.
“Tesla has unmatched scale and reach in the EV industry, and this dynamic could give Musk and Tesla a distinct competitive advantage in an environment without EV subsidies,” the bullish analyst said.
Read next:
“Active Investors’ Secret Weapon” Step Up Your Stock Market Game with the #1 “News and Everything Else” Trading Tool: Benzinga Pro – Click here to start your 14-day trial now.
Want the latest stock analysis from Benzinga?
This article Trump-Vance Administration Would Be ‘Terrible’ for Tesla, Baer Says: Elon Musk ‘Completely Alienated Most of the Buyers’ Originally Benzinga
