Trump's bill aims to eliminate EV tax credits, potentially harming Tesla.

From Yahoo Finance: 2025-06-15 12:05:00

Billionaire Elon Musk fights to keep federal tax incentives for electric vehicles in place. President Trump’s bill aims to eliminate these incentives, potentially harming struggling automaker Tesla, which saw a decline in sales last quarter.

Tesla faces challenges with demand growth as potential regulation threatens sales. Despite a strong cash position, the elimination of EV tax credits could impact sales negatively, requiring Tesla to compress profit margins to maintain demand growth.

ExxonMobil supports a carbon tax, which could benefit well-capitalized companies like Tesla over smaller competitors. While the removal of EV tax credits may have a short-term negative impact, it could lead to a long-term advantage for Tesla due to reduced competition.

Analysts suggest that the elimination of EV tax credits may not be a significant threat to Tesla in the long run, as the company’s strong financial position and market cap provide a buffer. While potential legislation could impact the industry, it may ultimately benefit Tesla by reducing competition.

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Read more at Yahoo Finance: Trump’s Bill Would End EV Subsidies: Could This Kill Tesla?