Will Tesla fall from the throne? What will happen to Trump's bill for Elon?

Trump-Musk Tension Shakes Tesla: Record Drop in Shares

The political tension between US President Donald Trump and Elon Musk has led to one of the sharpest falls in Tesla shares in history. With the new bill against electric vehicles and the global decline in sales, the risks facing the company are growing.

📊 Financial Collapse: Historic Loss in Tesla Shares

• Tesla shares have lost 14% in a day following the social media tension with Trump.
• That decline went on record as the largest single-day loss the company has experienced to date.
• After the shock drop in stocks, the 4% rebound that came a day later was also not permanent.
• Investors began to question the impact of the political debate on tech giants like Tesla.
• Billions of dollars in market capitalization have been melted down, and this has damaged Tesla's corporate reputation.

⚡ Incentive Crisis: Tax Blow on Electric Vehicles Is at the Door

• The bill being debated in the U.S. Congress includes the elimination of the $7,500 electric vehicle incentive.
• It is also planned to end incentives to battery factories and lithium producers.
• Cancellation of financial support for charging infrastructure could dampen investment enthusiasm across the industry.
• Introducing additional annual fees to electric vehicle users may reduce consumer interest.
• These regulations seriously threaten business models based on incentives, especially those of Tesla.

📉 Uncertainty in Carbon Loan Revenues

• Tesla generated $595 million in revenue from carbon credits in the first quarter of 2024.
• This figure attracted attention, surpassing the company's net profit in the same period.
• The new bill could also end this benefit from carbon credits.
• A major source of revenue for Tesla, which has earned $10.7 billion in carbon credits over the past 10 years, is at stake.
• The tightening of the US administration in this area makes business strategies based on environmental regulations difficult.

🌍 Slump in Global Sales: US and Europe Sound Alarm

• A 25% decline in Tesla sales as the U.S. automotive market grows has created a remarkable divergence.
• In Europe, there was a 39% drop in January-April, compared with a 50% decline in April alone.
• Consumers, influenced by Musk's political output, began to question their brand loyalty.
• Especially in markets such as Germany and France, customer interest has fallen sharply.
• At a time of increasing competition, wear and tear in Tesla's brand image threatens its global position.

🚗 Rise of BYD: Is Tesla Leaving the Throne?

• Chinese manufacturer BYD became the market leader, overtaking Tesla in Europe in April.
• JATO Dynamics considers this development a milestone in the electric vehicle market.
• BYD's cost advantage and strong production capacity gave it a big edge over Tesla.
• Its success in Europe has further accelerated BYD's global expansion strategy.
• This makes it imperative for Tesla to develop new strategies so that it can maintain its leadership.

🧠 Expert Review

The political conflict with Trump, possible losses in incentives, and sales declines in the global market create huge uncertainties for Tesla investors. While volatility in stocks may run high in the short term, risks may increase in the medium term with regulatory clarity. In the long run, Tesla's performance in innovation and cost management will be decisive. But in the current political environment, managing the company's public perception has become at least as critical as technology.

✅ Take Action

Now may be the right time to keep a close eye on the changing balances in the electric vehicle sector and take a strategic position. The turmoil at giants like Tesla could open the door to new opportunities.
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🛑 Disclaimer

This content is created by Investment Desk AI and does not constitute investment advice. You should make your decisions based on your own research and expert advisors.

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