Tesla CEO Elon Musk is firmly on the side of former President Donald Trump politically, but even Musk himself is unclear what a Trump administration would mean for the electric-car maker that pays him billions of dollars.
meanwhile Conference call with financial analysts on tuesday, Wells Fargo Director Colin Langan spoke to Musk about the impact of Trump’s victory and $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 said Tesla would pull back on investment in a factory it had planned to open in Mexico because President Trump has promised to impose heavy tariffs on cars made in that country. Monterrey in 2026“If that happens, we’ll have to wait and see how that plays out politically,” he said. Denied reports He said he would pump $45 million a month into Trump’s 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.”
Mr. Musk rejected the idea that regulators might frown on Tesla’s self-driving robot taxis, which have no steering wheel or pedals. Analysts asked him to explain why regulatory risk isn’t an issue for Tesla. General Motors The company stopped production of its steering-wheel-less Origin car and started making the Chevrolet Volt instead. 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 a second straight quarter of slowing growth and a fourth straight quarter of declining quarterly profits. Tesla continues to lose popularity in California, according to auto industry data. Sales fell 24% In the second quarter, Trump promised President Trump has promised to end what he calls the “Green New Scam” and repeal the “Day One Electric Vehicle Mandate.”
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.
