A top analyst said that if Trump becomes president again, it would be good for Tesla and bad for other electric cars. The reason is that Trump likes Tesla's CEO, Elon Musk, more than the current president, Joe Biden. This could help Tesla grow bigger and its value go up. But if Joe Biden stays as president, it might be harder for Tesla to succeed because he doesn't pay much attention to Elon Musk or electric cars. Read from source...
1. The article claims that a Trump presidency would be bullish for Tesla and negative for EVs in general, based on the assumption that Trump would give more attention to Musk and Tesla than Biden. However, this is not necessarily true, as both presidents might have different views on how to support or regulate the EV industry, depending on their political agenda and interests.
2. The article also implies that a Trump presidency would benefit Tesla's demand in China, by suggesting that the worst of demand issues in China are fading out. However, this is a vague and unsubstantiated claim, as there could be other factors affecting Tesla's demand in China, such as competition, consumer preferences, or regulatory changes.
3. The article further states that Tesla is expected to launch its robotaxi product in August, without providing any evidence or sources for this prediction. This seems like a speculative and exaggerated claim, as the actual launch date of the robotaxi product might depend on various technical, legal, and financial factors, not just on the presidential election outcome.
4. The article also uses emotional language to describe Musk's situation under different presidents, such as "actively ignored" by Biden or "more front and center" by Trump. This reflects a biased and subjective view of the relationship between Musk and the two presidents, rather than an objective analysis of their policies and actions regarding Tesla and EVs.
Tesla (NASDAQ: TSLA) is currently trading at $197.88, down 20.3% year-to-date. The article suggests that a Trump presidency would be bullish for Tesla and negative for the EV industry in general. This implies that Trump's policies would favor Tesla over other competitors in the electric vehicle market. Some possible reasons are:
1. Tax breaks or incentives for buying Tesla vehicles, which could increase demand and lower production costs.
2. Relaxed regulations on autonomous driving technology, which Tesla is heavily investing in with its robotaxi project.
3. Less emphasis on renewable energy sources and climate change initiatives, which could hurt other EV manufacturers that rely on government support or consumer preference for green vehicles.
4. Increased tariffs or trade barriers on imported EVs, which could make Tesla more competitive in the domestic market.
5. More direct involvement of Trump and his administration in the EV industry, which could boost Tesla's public image and visibility.
6. Potential risks include:
- A Biden presidency, which would likely continue or increase support for EVs and renewable energy, as well as impose stricter regulations on autonomous driving technology.
- Regulatory scrutiny or legal challenges on Tesla's operations, especially in China, where the company is facing criticism and allegations of unethical practices.
- Increased competition from other EV manufacturers, such as GM, Ford, Volkswagen, and Chinese companies like NIO, BYD, and WM Motor.
- Technological disruptions or innovations that could render Tesla's products obsolete or less competitive.