Would a Trump White House be good or bad for Tesla? Wedbush discusses

Would a Trump White House be good or bad for Tesla? Wedbush discusses

Elon Musk and Donald Trump

With political uncertainties intensifying as the November US Presidential Election approaches, investors frequently have questions about how a potential victory of Donald Trump would impact certain stocks, including Tesla (NASDAQ:TSLA).

According to Wedbush analysts, a Trump presidency “would be an overall negative for the EV industry as likely the EV rebates/tax incentives get pulled, however for Tesla we see this as a potential positive.”

Tesla’s unmatched scale and scope in the EV space could give it a clear competitive advantage in a non-EV subsidy environment, analysts noted. This advantage would be further strengthened by likely higher tariffs on China, deterring cheaper Chinese EV manufacturers like BYD (SZ:002594) and Nio (NYSE:NIO) from entering the US market.

More broadly, the key for Tesla’s stock ahead is the recognition by the market that Tesla is the most undervalued AI play, the investment firm said. Wedbush analysts are particularly curious about the upcoming Robotaxi Day on August 8th, which they believe could pave the way to full self-driving (FSD) and an autonomous future.

Analysts highlighted that “the worst is in the rear-view mirror for Tesla as we believe the EV demand story is starting to return to the disruptive tech stalwart.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest