Tesla According to a recent assessment by JP Morgan faces major challenges if Donald Trump becomes US president again. The planned cuts to the subsidies for electric vehicles could Tesla cause enormous financial losses. Up to 40 percent of profits could be at risk - an alarming scenario for the e-car manufacturer, which was already facing a decline in vehicle sales in 2024.
How will Trump's plans affect Tesla on the
Donald Trump has already announced that he will abolish the tax credits and subsidies for electric cars that make Tesla's vehicles more affordable. These measures could Tesla hit on several levels:
- Loss of profits: JP Morgan estimates that Tesla as a result of these changes up to 3.2 billion US dollars (approx. 3.1 billion euros) could be lost.
- Decline in demand: Tesla reported a decline in annual vehicle sales for the first time in 2024. Around 1.79 million vehiclesa slight decline compared to the record sales of 1.8 million in the previous year.
Tesla is currently benefiting greatly from the government subsidiesespecially through the Inflation Reduction Actwhich gives buyers of electric vehicles up to 7,500 US dollars tax credit for buyers of electric vehicles. Should this regulation be abolished, this could have a particularly price-sensitive buyers buyers.
Tesla Under pressure: first declines in sales and prices
Tesla is already in a difficult phase:
- Decline in sales figures: 2024 was the first year with a year-on-year decline in sales.
- Falling share price: Following disappointing sales results for the fourth quarter, the Tesla-share price fell on Thursday by six percent.
Analyst Ryan Brinkman of JP Morgan warned that these numbers are a wake-up call for investors should be. The market for electric cars is showing signs of slowing down as consumers increasingly turn to more affordable hybrids hybrids.
How is Elon Musk reacting?
Tesla-CEO Elon Musk is optimistic despite the gloomy forecasts. He argues that the abolition of subsidies for Tesla could be beneficial as it would make competition on the market fairer. However, analysts like Brinkman disagree. They see Tesla as the car manufacturer that would suffer the most under a Trump administration, as the company is heavily dependent on government incentives and registration certificates benefits.
A further risk for Tesla is the dependence on registration certificatesthat other car manufacturers buy in order to meet their emissions targets. Without this source of revenue, Tesla's cash flow could shrink significantly.
JP Morgan remains skeptical
JP Morgan is sticking to its pessimistic price target for Tesla which stands at 135 US dollars (approx. 130 euros) is. Analyst Brinkman emphasizes that the potential cuts in subsidies, combined with the already declining sales, could lead to a deterioration in Tesla's sales, gross profits and earnings per share could mean.
Conclusion: uncertain times for Tesla
The coming months could be Tesla be decisive. The political developments in the USA and the planned cuts in subsidies pose a considerable challenge. Investors should monitor the situation closely, especially in view of the potential impact on Tesla's profits and sales figures.
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