The article explores Biden's decision to retain contracts with SpaceX, highlighting the company's cost efficiency and rapid service delivery compared to competitors. It contrasts with Trump’s potential approach of terminating these relationships, which could hinder US space efforts and favor China's space program. Although Tesla has received limited federal contracts, it gains more from significant tax credits and emissions credits that bolster its business model. The piece suggests regulatory pressure could threaten Musk's companies more effectively than contract cancellations. Lastly, it notes a decrease in Tesla's share price, reflecting market reactions to political maneuvers.
Biden's decision to maintain SpaceX contracts stems from the company's ability to provide lower-cost, faster space services, crucial for keeping US competitive in global space programs.
Tesla's federal contracts are minimal compared to the substantial benefits from tax credits and emissions credits, which significantly support the company's financial health.
Instead of terminating contracts, the Trump administration could leverage regulatory agencies to undermine Musk’s companies, particularly through tighter regulations affecting Tesla’s autonomous features or SpaceX's development.
Despite external pressures, Tesla's shares have fallen nearly 15 percent, indicating a volatile response from investors to political dynamics surrounding the company.
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