Tesla Faces Profit Risks as EV Subsidy Cuts Loom Under Trump

Analysts warn that proposed policy changes could slash Tesla's profits by 40%, compounding challenges from slowing sales and rising competition.

JPMorgan analysts estimate Tesla could lose $3.2 billion in revenue if EV tax credits and subsidies are eliminated under the Trump administration.
Tesla reported its first-ever annual drop in vehicle sales in 2024, with 1.79 million cars sold, down slightly from 1.8 million the previous year.
The EV market is seeing reduced demand as consumers shift toward more cost-effective hybrid vehicles, intensifying competition for Tesla.
Investor optimism about Elon Musk's political ties and potential regulatory relief for autonomous vehicles contrasts with bearish forecasts, including a $135 stock price target from JPMorgan.
Despite recent challenges, Tesla's stock rebounded 8.22% on Friday, reflecting continued confidence in its long-term innovation potential, including projects like the robotaxi.