From Nasdaq: 2024-11-14 16:28:16

Shares of Tesla (NASDAQ: TSLA) dropped after reports of the Trump administration planning to eliminate the $7,500 EV tax credit. Tesla’s sixth recall this year for the Cybertruck added to the negative sentiment, resulting in a 5.8% decline in the stock price.

Other EV stocks like Rivian and Lucid also fell on the news of the potential tax credit removal. Tesla’s profitability could help it weather the storm better than its competitors. The loss of the tax credit could impact sales for Tesla and other EV companies, favoring gas-powered vehicles instead.

Tesla’s CEO, Elon Musk, previously mentioned that ending the EV subsidy could hurt sales slightly. However, high interest rates also affect Tesla’s ability to compete on price. The removal of the tax credit may lead to a preference for gas-powered vehicles over EVs, impacting sales across the industry.

Analysts see potential in Tesla’s stock despite the challenges. The company made it to the list of top 10 stocks to buy, indicating long-term growth potential. Investors should consider the broader market impact of the EV tax credit removal when making investment decisions.



Read more at Nasdaq: Why Tesla Stock Was Sliding Today