Elon Musk’s electric car company, Tesla, has seen its stock market value skyrocket since President Donald Trump took office, despite a disappointing financial report. Investors are betting on the Trump administration’s plans to reduce regulations and tariffs, which could benefit Tesla’s business.
Musk has promised to start offering robotaxis in June and is developing unsupervised, driverless vehicles. The White House has given him an office and made him head of the Department of Government Efficiency. Transportation Secretary Sean Duffy is also promising to cut excessive regulation on automakers.
However, Trump’s decision to impose tariffs on Canada and Mexico sent Tesla’s stock down 5% Monday. Musk’s company sources parts from around the globe, so it will likely feel an impact from these tariffs.
Trump has vowed to eliminate a federal tax rebate for electric vehicles and lower emission standards, which could hurt Tesla’s business of selling “regulatory credits.” The Trump administration may also hold off on investigations into Tesla’s Full Self-Driving technology.
Despite this, investors remain bullish on Tesla. Wedbush Securities analyst Dan Ives says it will be a “golden age” for the company and Musk. Morningstar analyst Seth Goldstein notes that regulations that hurt other automakers do not seem to impact Tesla.
Tesla shareholders must also keep an eye on Musk’s foray into politics, including his endorsement of far-right parties in Europe. The company’s stock has grown to over $1.3 trillion, more than the worth of General Motors and other top car makers combined.
Source: https://apnews.com/article/musk-tesla-trump-earnings-china-regulation-tariffs-a40f377d4f7f82ab3363dd6b7119a240