As of the close on Tuesday, Tesla boasted a market capitalization of 807.1billion, 1 trillion mark in market capitalization. This elite group includes industry titans such as Nvidia, Apple, Microsoft, Alphabet, and Amazon, reflecting Tesla's stature within the tech landscape, which initially crossed the trillion-dollar threshold in October 2021.
According to Wedbush Securities analyst Dan Ives, the prospect of a Trump administration heralds the likelihood of reduced regulatory burdens for Tesla and its peers. Ives noted, “Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment.” He further indicated that potential increases in tariffs on Chinese imports could further insulate Tesla from competition with lower-cost Chinese EV manufacturers like BYD and Nio, which have sought to penetrate the U.S. market.
Conversely, Trump has previously suggested the possibility of eliminating the federal $7,500 electric vehicle tax credit—an incentive that has historically played a crucial role in driving Tesla's sales. This potential policy shift raises questions about future demand for Tesla's vehicles; however, the company’s recent performance reflects resilience and adaptability in a competitive market.
In its latest earnings report, Tesla revealed revenues of 25.18billion, for the third quarter. In the accompanying earnings call, Musk expressed optimism about vehicle growth, projecting an increase of 20% to 30% in the coming year. He attributed this anticipated growth to the development and rollout of lower-cost vehicles and advancements in autonomous driving technology.
Despite Tesla's significant investments in driverless vehicle technology over the past decade, its primary competitor in this domain, Waymo—owned by Alphabet—has made strides in commercial robotaxi services across major cities. Musk has indicated that he intends to leverage his influence with a potential Trump administration to facilitate a streamlined federal approval process for autonomous vehicles. Currently, regulatory approvals are handled at the state level, a situation Musk characterizes as an obstacle to wider deployment of fully autonomous driving systems.
As Tesla navigates this evolving landscape post-election, its stock's impressive rally serves as a testament to the intricate relationships between politics, business, and technological advancement. Investors and industry stakeholders alike will be closely monitoring the developments of the incoming administration and their implications for the future of EVs in an increasingly competitive market.
