The tension between former president Donald Trump and Elon Musk returned to climb after the founder of Tesla redoubled his criticisms of the ambitious fiscal and expenses project promoted by the president in the Senate. Trump responded with a hard public threat: withdraw the federal subsidies received by the companies from the technological tycoon.
In this context, markets react with casualties. The Tesla shares yield up to 5.9% This Tuesday, accumulating a high volatility history in the midst of political conflict. Already on June 5, the papers had collapsed 14% after the first public confrontation between Trump and Musk.
Through his social truth network, the president wrote that Musk “could receive more subsidies than any other human being in history,” and slid that without that state support, “I would probably have to close the business and return home in South Africa”. The tone of the statements made clear the growing confrontation between them, just weeks after a previous crossing for the same legislative package.
Trump also suggested that the Government Efficiency Department (Doge) – a symbolic structure proposed by Musk during the Republican campaign – could thoroughly review the public funds for Spacex, Tesla and other projects linked to the entrepreneur. “A lot of money will be saved!” The president wrote with capital letters.
Subsidies under fire and market on alert
Musk, meanwhile, reiterated its frontal rejection of the billwho considers an unnecessary expense. Since his social network X, the businessman ironized with the idea of forming a “América Party” in case the regulations are approved, and denied that their objections have to do with the defense of benefits for their companies. “I am literally saying that everything is cut. Now,” he said.
The project promoted by Trump contemplates Accelerate the end of key tax creditsas the deductation of US $ 7,500 for the purchase of electric vehiclesa measure that would directly affect Tesla, the biggest beneficiary of that incentive. The company also appears as a receiver of production benefits with Panasonic Holdings Corp., under the climatic law sanctioned during the management of Joe Biden.
Regulatory risk and sales fall
Tesla not only depends on the sales of electric cars, but also on the commercialization of Regulatory credits to manufacturers who seek to comply with the environmental norms of California and the Federal Government. According to estimates JPMorgan Chase & Co.the changing regulatory panorama under Trump’s presidency could put at risk until 40% of profits of the automaker.
In parallel, Tesla prepares for publish your second quarter deliveries this weekand analysts anticipate a new drop in demand: the company is expected to have sold some 390,600 vehicles worldwidewhich would imply a fall in 12% year -on -yearafter the 13% decrease recorded in the first quarter.
Trump, on the other hand, reiterated his historic opposition to subsidies to electric cars. “Electric cars are fine, but everyone should not be forced to have one,” he wrote, in a phrase that summarizes his vision of deregulation and free market choice.
Source: Ambito
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