Tesla stock faces potential decrease in earnings due to elimination of federal EV tax incentives

From Nasdaq: 2025-06-28 06:40:00

Tesla (NASDAQ: TSLA) stock faces a 30% drop in earnings next quarter. Despite this, its price-to-sales ratio remains high at 12.6. In contrast, Rivian Automotive trades at just 2.9 times sales.

President Trump’s new bill could eliminate federal EV tax incentives, impacting Tesla sales. Over 90% of Tesla’s vehicle sales come from models under $50,000, with federal tax credits helping make them more affordable. If credits are removed, expect a decrease in sales and earnings.

Invest in the 10 best stocks now! Tesla stock is priced for growth, but a potential risk could hinder its trajectory. With federal tax credits possibly phasing out, Tesla’s sales and earnings may take a hit. Stay informed to seize profitable opportunities.



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