How would Trump's Presidency benefit Elon Musk and Tesla more

1) Someone said Trump removing the Inflation Reduction Act passed by the Biden administration in 2022 may hurt the EV industry including Tesla. This may not be accurate because the competitors will be hurt more. Tesla will gain higher EV market share when all EV makers are competing on an equal foot.

2) Trump’s promises to levy heavy tariffs on Chinese imports, particularly on EVs, would shield Tesla from that competition. BYD who plan to build a factory in Mexico will not be able to export to the US as Trump will plug the loop hole.
Shares of China’s BYD dropped 2.3 per cent overnight.

3) A role overseeing deregulation and cutting spending would give EM “influence over US policy on AI, space exploration and EVs – all which EM has a direct interest in via Tesla and other ventures.

4) EM may try to wield his influence to reduce regulatory oversight of his businesses. He has been a vocal critic of federal review of his SpaceX rocket business and wants to speed up approval of his autonomous driving technology - Tesla FSD and Robotaxi.

5) As Tesla is a major supplier of solar systems and batteries. Trump has promised to kill the offshore wind industry and rescind all unspent funds under the Inflation Reduction Act will help the company to gain higher sales.

6) SpaceX has also moved into building spy satellites just as the Pentagon and American spy agencies appear poised to invest billions of dollars into them. The military contracts may reach a greater scale. Those companies that supported the Biden administration will lose out.

7) The United Auto Workers filed unfair labour practice charges against both Trump and EM after the two talked about EM supposedly firing striking workers during a conversation on X. Such legal action against Tesla and EM will likely disappear. There was rumour that the strike was politically motivated by the Biden administration.

8) Trump has pledged to lower taxes on corporations and the wealthy. This will benefit Tesla and EM.

9) Someone said Tesla's business in China may be under fire and even force to reduce the investment there. I have already said in my previous post that such a claim is unlikely. Being an advisor to the Trump administration, EM can act as a mediator between China and US and may help to avoid an all round trade war.

10) EM's social media X.com will be viewed as the hero to uphold freedom of speech. Despite someone said the platform is losing revenue, X.com has increased viewership. This may help the company to gain higher advertisement share especially from companies that supported Trump's Presidency and transparency in reporting.

Bottom line

The above benefit doesn't mean Tesla will reach the moon in the next few days as the Wall Street will look at the fundamentals after the storm has settled down.

Last I would like to say to those who shouted the stock will crash back to 100 USD or the company will go bankrupt in the short term - stop dreaming and avoid short selling the stock. Short sellers have lost $3.5 billion in a short squeeze just 2 weeks ago.

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