5 Reasons Tesla may benefit from Trump Presidency amid Biden Exit

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Yahoo Finance reported that investors are starting the week scrambling to decide if President Joe Biden’s decision to end his reelection campaign and endorse Vice President Kamala Harris increases or decreases Donald Trump’s chances of regaining power.

Here are 5 reasons why Tesla and Elon Musk may benefit from the Trump Presidency:

1) “Investors should expect a spike in volatility,” Dave Mazza, chief executive officer of Roundhill Financial, said before Sunday’s announcement. “If Vice President Harris can mobilize quickly to give Trump a material run, then we should expect volatility to linger. However, if Trump continues to pull ahead in the polls and investors view his win as inevitable, then the ‘Trump Trade’ will take over and volatility will decline.”

5 Reasons Tesla may benefit from Trump Presidency amid Biden Exit

2) 'Trump Trade' was viewed as a win for Tesla not only Elon Musk supported the Trump Presidency in public but also Trump openly praised Elon Musk. According to a familiar source, Trump is considering tapping Elon Musk as a policy adviser if the Republican presidential candidate reclaims the White House in November's election.

Trump said: “I’m a big fan of electric cars. I’m a big fan of Elon Musk. I like Elon. And I think a lot of people are going to want to buy electric cars, but if you want to buy a different type of car you have to have a choice.”

3) There is fear that the Trump Presidency will spell the end to tax credit for EV which will be bad for the EV industry. According to Elon Musk, if the tax credit is removed, Tesla will regain market share because the company can survive better than the other EV makers.

Elon Musk: Take away the subsidies. It will only help Tesla. Also, remove subsidies from all industries!

3) AJ posted in x.com that the Biden's administration is unfriendly to Tesla and Elon Musk. Biden called Mary Barra the leader in EVs while barely selling any EVs. Biden's administrations did not allow Tesla to attend the EV summit in the White House and nearly pushed through the EV tax credit excluding all non-unionized EV makers (like Tesla). Biden also called publicly to "look into" Elon's activity kicking off an avalaunch of frivolous investigations.

4) Trump will impose heavy tariffs on Chinese EV which will benefit the EV industry including Tesla. Trump's pick VP, Vance highlighted that Elon Musk’s companies support American workers. He also praised the CEO for building real things.

“Elon is actually a great example of an American entrepreneur. He’s built a company, but also a company that’s employed a lot of good American workers. If you think about it, Elon Musk is, in some ways, a throwback to an older generation of American entrepreneur. He builds real things. He builds cars. He builds rockets. And that’s the kind of economy that President Trump wants to create,” Vance said.

5) Wedbush Securities analyst Dan Ives recently shared a rather interesting prediction for Tesla. As per the analyst, a potential Trump presidency would actually be bullish for Tesla, even if it would be negative for everyone else in the electric vehicle sector. Tesla is also among the carmakers in the United States today that can compete without the federal tax credit, as the company has already achieved economies of scale.

My Take: There was an article titled "Few Democrats willing to buy a Tesla after Elon Musk backs Trump, investor warns". In the article, a poll result implies that Tesla is losing customers who are democrats. I take the poll with a pinch of salt because first the poll used the term "Tesla's favourability" which is based on sentiment. Such sentiment which is temporary and will change after the US presidential election. Second people buy electric vehicles based on price, quality and customer service, and have very little to do with political preference. Third the poll didn't explain why there is also drop in Tesla's favourabilty for Republicans and no data for independent/no party affiliation buyers. The article, which put all the blame on Elon Musk for hurting Tesla, is negatively biased, more likely a politically motivated tactic to discredit the man who openly supported Trump or a click-bait trap. I'll put a link here for those who want to read the details:

'Few Democrats willing to buy a Tesla' after Elon Musk backs Trump, investor warns - Yahoo Finance