Tesla to benefit from Trump presidency, claims Wedbush analyst

Tesla to benefit from Trump presidency, claims Wedbush analyst

Wedbush Securities analyst Dan Ives recently shared a rather interesting prediction for Tesla. As per the analyst, a potential Trump presidency would actually be bullish for Tesla, even if it would be negative for everyone else in the electric vehicle sector.

Ives’ comments were shared during a segment in CNBC’s Last Call. Amidst his current campaign, former President Donald Trump has so far been against electric vehicles for the most part. Despite this, he has also stated that he is “a fan of Elon.” “I like Elon, I like him, and I think a lot of people are going to want to buy an electric car,” Trump said at a rally earlier this month.

Elon Musk confirmed this as much, even stating that the former president was “very nice” and he does call him “out of the blue for no reason.” Musk inferred that Trump’s positive stance on Tesla may be partly due to the fact that some of the former president’s friends probably now have Teslas. He also noted that Trump is “a huge fan of the Cybertruck.”

Considering Trump’s typical anti-EV rhetoric, it was no surprise that the Wedbush analyst was asked if the former president’s potential efforts to roll back electric vehicle incentives could benefit Tesla. Ives noted that a Trump presidency would indeed be positive for Tesla.

“I’d say Trump’s pro-Musk, and I’d say it’s bullish. A Trump presidency would, at the end of the day, be bullish for Tesla, negative for EVs… I think it also speaks to the Biden administration, Musk has really been an afterthought… I think if Trump’s in the White House, Musk gets more front and center. That’s bullish for Tesla, especially if you start to see those EV rebates roll back — negative on the industry, bullish for Tesla,” Ives said.

The Wedbush analyst has a great point. The Biden administration has made it a point to ignore Tesla and focus on union-made EVs instead, so it would not be surprising if a potential Trump administration made it a point to openly support Musk and Tesla. Tesla is also among the carmakers in the United States today that can compete without the federal tax credit, as the company has already achieved economies of scale.

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