Wedbush analysts, led by Dan Ives, argue that cutting the EV tax credit would primarily harm traditional automakers rather than Tesla due to its unmatched scale.
Musk indicated the impact on Tesla from losing the EV tax credit would be slight, but it would be "devastating" for competitors, potentially aiding Tesla's future growth.
Musk's increasing influence with Trump may affect EV policy, possibly benefiting Tesla amid the elimination of the tax credit if accompanied by other incentives.
We maintain our OUTPERFORM rating and $400 price target on Tesla, stating that any stock sell-off due to the EV tax credit news is a misguided reaction.
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