Trump cancels $7,500 Tax credit will help Tesla capture larger EV market share
$Tesla (TSLA.US)$ $BYD COMPANY (01211.HK)$ $NIO Inc (NIO.US)$ $XPeng (XPEV.US)$ Trump said that if he becomes president, he may cancel the $7,500 EV tax credit. Despite what some "popular" media said, this will not hurt Tesla but help the company to capture larger EV market share. Here is why:
1) Bloomberg estimated last year that Tesla will receive a total of $41 billion in subsidies from the government by the end of 2032. The subsidy is not only a $7,500 tax credit, but also a $45 per KWH tax credit for battery production. Each cybertruck's 4680 battery will receive about $5,500 in subsidies.
![Trump cancels $7,500 Tax credit will help Tesla capture larger EV market share](https://sgsnsimg.moomoo.com/sns_client_feed/101709443/20240820/1724133376413-random9516-101709443-android-org.png/big?area=101&is_public=true)
2) This will certainly affect Tesla's profits, but the cancellation of the $7,500 subsidy needs to be approved by Congress, which will not happen at least before 2026. Tesla will most likely have solved the problem of driverless taxis by 2026. Tesla's profits have already shifted from hardware sales to software subscriptions.
3) This will make it more difficult for traditional car companies to survive with pure electric or even hybrid vehicles, further slowing down their transition to EVs. Tesla will therefore capture a larger share of the EV market.
Source:
![Trump cancels $7,500 Tax credit will help Tesla capture larger EV market share](https://sgsnsimg.moomoo.com/sns_client_feed/101709443/20240820/1724133376965-random5658-101709443-android-compress.jpg/big?area=101&is_public=true)
$BYD COMPANY (01211.HK)$ $BYD Co. (BYDDF.US)$ $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Tesla (TSLA.US)$ $VOLKSWAGEN A G (VWAGY.US)$ $NIO Inc (NIO.US)$ $Li Auto (LI.US)$ $XPeng (XPEV.US)$ $General Motors (GM.US)$ $Ford Motor (F.US)$ $Rivian Automotive (RIVN.US)$ $MERCEDES-BENZ GROUP AG (MBGAF.US)$ $TOYOTA MOTOR CORP (TOYOF.US)$ $GEELY AUTO (00175.HK)$ $Stellantis NV (STLA.US)$
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