Top line

Tesla stock jumped Monday following a report indicating that President-elect Donald Trump will accelerate regulations on self-driving cars, sending a positive signal about how Trump will oversee the electric vehicle giant run by the world’s richest man and his close ally, Elon Musk, within days after Tesla shares fell. to Trump plan kill pro-business policy.

Key facts

What other impact will Trump have on Tesla?

The announced plan to prioritize approval of autonomous driving is the latest indication of how the Trump regime will handle Tesla’s heavily regulated industry. The Trump administration plans end $7,500 federal tax credit for electric vehicle buyers, Reuters reported last week, briefly pushing Tesla stock into a 10% correction due to the potential for lower demand for its cars, although analysts are largely see the potential tax credit appears more harmful to other electric vehicle makers than to Tesla. The company could also be heavily impacted by hawkish trade policies toward China supported by Trump, as approximately 30% of Tesla’s vehicle sales come from China, although some experts believe that Musk, who recommended against tariffs, could have a strong voice in developing a trade policy more favorable to Tesla, potentially via exclusions. The Bernstein Group identified several other areas where the Trump administration could impact Tesla, including a “far-fetched but still plausible” scenario in which Trump orders the replacement of nearly 700,000 federal government vehicles with Teslas.

Crucial quote

“I’m for electric cars, I have to be because Elon has supported me very strongly,” Trump said. previously a public skeptical of autonomous and electric vehicles, said in August.

Forbes Rating

Already the richest person on the planet, Musk has become more than $50 billion richer since the election as Tesla shares have rallied thanks in large part to the prospect of more favorable regulation. Its 315 billion dollars net worthwhich increased by $12 billion on Monday, is more than $85 billion higher than anyone else’s.

Key context

Musk is also the owner of social media platform X and the chief executive and largest shareholder of government aerospace company SpaceX and generative artificial intelligence startup xAI. “Trump’s victory could also prove even more positive for Elon Musk’s other companies” than for Tesla, as those companies should also benefit from more favorable regulation, Sacconaghi theorized. Musk, who donated more than 100 million dollars toward Trump’s electoral efforts, appeared inseparable from the president-elect this month and weighed in publicly and privately on the transition process. The billionaire was chosen last week to lead a commission focused on cost reduction in the federal government, the Department of Government Effectiveness.

Further reading

ForbesHow Trump’s anti-EV stance has evolved – as Musk tries to court him against TeslaBy Derek Saul

ForbesWhat we know about Elon Musk’s 80-hour-a-week ‘Revolutionary’ ‘Department of Government Effectiveness’By Derek Saul