Tesla is wary of the impact of proposed tariffs by Trump that could hurt its business due to reliance on global parts. The removal of Biden-era EV tax credits also poses a challenge. However, Elon Musk's strategic relationship with Trump may offer regulatory benefits, particularly in self-driving regulations. Analysts believe that despite short-term challenges, Musk's focus on long-term sustainability and a streamlined regulatory framework could enhance Tesla's competitive edge, especially in autonomous driving, which they see as the key to future growth.
Tesla's exposure to tariffs and the removal of EV tax credits may hurt its profitability, but Elon Musk's ties with Trump could yield regulatory advantages.
Analysts suggest that Musk's long-term perspective on sustainable transport will ultimately benefit Tesla, even amid short-term challenges from Trump's policies.
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