Tesla stock falls as Trump ends EV mandate, looks to eliminate subsidies
Published On Jan 21, 2025, 10:22 AM
Tesla's stock dropped over 3% following the recent reversal of electric vehicle (EV) mandates by former President Trump on his first day back in office. The rollback affected a rule that required half of new cars manufactured to be electric by 2030, along with plans to eliminate subsidies for EVs, which were initially aimed at promoting clean energy. Other EV-centered companies like Lucid and Rivian also saw declines, while traditional automakers like GM and Ford experienced gains. Elon Musk, Tesla's CEO, suggested that the impact on Tesla would be minimal compared to its competitors, and he remains optimistic about the company's long-term potential focused on self-driving technology.
Stock Forecasts
TSLA
Negative
The news indicates a significant shift in EV policy that may create long-term challenges for Tesla and other electric vehicle manufacturers. With the elimination of subsidies, EV sales could see a decline, potentially affecting Tesla's growth trajectory. However, Tesla's established position in the market and its focus on innovation may cushion the impact compared to its competitors. Investors should closely monitor performance as market adaptations unfold in response to these regulatory changes.
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