Last Updated on 1 month by Rojgar samachar
Tesla Stock and 2024 Election: Will Donald Trump’s win give Tesla a boost?
A Donald Trump win in the 2024 US presidential election could have a huge impact, and it could have major implications for the stock market and companies like Tesla. For Elon Musk’s company Tesla, which is leading the world in electric vehicles and renewable energy, a Trump win could bring some mixed signals. Let’s break down how and why:
- Policy shift towards fossil fuels
Donald Trump’s stance is in favour of fossil fuels. He also promoted the oil and coal industry during his first presidency. If Trump becomes president again, fossil fuels could get a push again. It is renewable energy companies, including Tesla, that could face a challenge, as regulatory support for EVs and the green energy sector could reduce.
- Impact of tax credits and subsidies
So far, Tesla has benefited from clean energy tax credits and subsidies in the US. If Trump returns, he could either make these gains or eliminate them altogether, which would directly impact Tesla’s price competitiveness. Without renewable energy and EV incentives, the cost of EVs could get higher, which could impact Tesla’s sales.
- China relations and Tesla
China is a key market for Tesla and accounts for a large share of production and sales. If Trump’s victory leads to tensions in US-China relations again, Tesla could also face supply chain and sales issues. The trade war could directly impact Tesla, especially in terms of tariffs and import-export costs.
- Stock market volatility
Elections always have an impact on the stock market, and a Trump win is almost certain to lead to initial volatility in the market. Some experts say that if Trump wins, Tesla and other tech stocks could stabilize after the initial impact, as the overall US corporate tax structure increases in favor of expectations.
- Growth opportunities in China and India
China is a big market for Tesla, but at the same time, there is a lot of competition in our market with companies like BYD. If Tesla can further expand its market share there, it could have a positive impact on the stock performance. India is also a potential market for Tesla, and there are some rumours that Tesla is also looking at setting up a manufacturing setup in India. If these plans come to fruition, it could be a big positive point for Tesla and for investors.
- Personal dynamics of Musk and Trump
Elon Musk and Donald Trump have had a complicated relationship, sometimes supporting and sometimes disagreeing. If Trump comes to power and maintains a positive dynamic with Musk, Musk could gain some regulatory relief and strategic support from it.
- EV (Electric Vehicle) demand and expansion
Tesla’s core business model is based on electric vehicles. In the last few years, the demand for electric vehicles has been increasing worldwide, and this trend is expected to continue in 2024 as well. Tesla delivered record numbers last year, and is still on a demand growth path. If Tesla is able to increase its production in an efficient manner, it could have a positive impact on their stock.
Tesla Stock and 2024 Election Should investors invest in Tesla right now?
If you are a Tesla investor or planning to be, it is important to understand the volatility following Trump’s win. There may be some volatility in the short term, but given Tesla’s long-term outlook and EV demand, Tesla may still have growth opportunities if your outlook is long-term. However, it will be important to keep a close eye on policy changes and developments in international relations.
Tesla Stock and 2024 Election Bottom Line
The 2024 elections will certainly have an impact on Tesla stock, and a Trump win could bring a mixed impact. Investors will have to see whether Trump’s policies will convert short-term volatility into sustainable long-term growth.