Shares of Tesla (TSLA) are sinking in pre-market trading — and into the market open at the time of this post — on Wednesday morning after the EV company released its second quarter results after the closing bell on Tuesday, revealing falling profits for the fourth straight quarter.
Qualifying electric vehicle buyers currently have the benefit of a $7,500 tax credit in the US, giving incentive to purchase one, but recent comments from former President Donald Trump suggest he would roll back Biden administration policies and curtail investments in EVs. On the company’s earnings call, Tesla CEO Elon Musk — who has voiced his support of Trump — claims that the impact of these rollbacks wouldn’t impact the company that much, but rather it would hurt the competition more.
TD Cowen managing director and senior research analyst Jeffrey Osborne joins Morning Brief to give insight into Tesla’s recent performance and which administration could be better for Tesla: one under current Vice President Harris or Trump.
"I personally think that the Democrats win would be better for any type of EV and energy transition company, there’s just a lot more subsidization, and an easier transition path. I think there would be a lot of confusion in the market if the 2027 EPA targets were rolled back under a Trump administration, there certainly wouldn’t be a direction of travel or marching orders, so to speak, for the industry, and so some OEMs [original equipment manufacturer] might take a more leisurely pace in getting there," says Osborne.
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