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  7. How Trump's EV Cuts Pose a Threat to Tesla Stock: Insider Insights

How Trump's EV Cuts Pose a Threat to Tesla Stock: Insider Insights

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Video by: CNBC
Learn how President Trump's initiatives to cut back federal support for electric vehicles could negatively impact Tesla stock. Get exclusive insights on how CEO Elon Musk is navigating this challenging situation and the potential consequences for the company's financial health.
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0:00
Mr. Elon Musk.
0:03
Yes!
0:06
Elon Musk, who runs the largest U.S.
0:09
EV maker Tesla right now, might be closer than anyone
0:13
in the world to President Donald Trump.
0:16
We talk almost every day.
0:17
And President Trump has already taken steps to roll
0:20
back the federal programs that support Tesla's main
0:24
product. Some say that could be disastrous for the
0:28
company.
0:29
There's no way you can spin this positive.
0:31
It's a huge negative for Tesla.
0:33
He funds the rest of his empire through Tesla stock
0:37
sales or Tesla, borrowing against Tesla
0:38
stock. Cut off your nose and spite your face.
0:41
Doesn't make a lot of sense, but it's all about power for
0:44
Elon.
0:44
On the other hand, Tesla has been moving into
0:47
autonomous vehicles and robotics,
0:49
new businesses that bullish investors say could double
0:53
Tesla's market value.
0:54
You think another trillion in market cap from here?
0:57
I mean, I think the golden goose is autonomous.
1:01
CNBC dives into the Trump administration's moves on
1:05
EVs and how they could help or hurt America's largest EV
1:08
maker and President Trump's right hand man.
1:19
What's this one? That's
1:20
unleashing American energy, sir?
1:23
On January 20th, the Trump administration
1:26
issued an executive order that took aim at a variety
1:30
of "green" government policies.
1:32
Many that have helped Tesla and continue to help it are
1:36
on the chopping block.
1:37
The order states the administration's aim to
1:41
eliminate subsidies for EVs,
1:42
prevent states from setting their own EV targets,
1:46
and pause the disbursement of funds for EV charging
1:49
stations, among other things.
1:53
Trump's head of transportation,
1:55
Sean Duffy, is also looking to roll back federal rules
1:58
that limit vehicle emissions.
2:00
There are, of course, questions as to how much
2:03
Trump can do and how much Republicans are going to
2:05
want to do. Some rules, like the EV tax credits for
2:09
buyers, are in the Inflation Reduction Act of 2022.
2:13
Repealing those would take an act of Congress,
2:15
but there are other means at the administration's
2:18
disposal. Say you are a company that has an approved
2:21
loan from the Department of Energy that hasn't been
2:23
funded yet.

Video Summary & Chapters

No chapters for this video generated yet.

Video Transcript

0:00
Mr. Elon Musk.
0:03
Yes!
0:06
Elon Musk, who runs the largest U.S.
0:09
EV maker Tesla right now, might be closer than anyone
0:13
in the world to President Donald Trump.
0:16
We talk almost every day.
0:17
And President Trump has already taken steps to roll
0:20
back the federal programs that support Tesla's main
0:24
product. Some say that could be disastrous for the
0:28
company.
0:29
There's no way you can spin this positive.
0:31
It's a huge negative for Tesla.
0:33
He funds the rest of his empire through Tesla stock
0:37
sales or Tesla, borrowing against Tesla
0:38
stock. Cut off your nose and spite your face.
0:41
Doesn't make a lot of sense, but it's all about power for
0:44
Elon.
0:44
On the other hand, Tesla has been moving into
0:47
autonomous vehicles and robotics,
0:49
new businesses that bullish investors say could double
0:53
Tesla's market value.
0:54
You think another trillion in market cap from here?
0:57
I mean, I think the golden goose is autonomous.
1:01
CNBC dives into the Trump administration's moves on
1:05
EVs and how they could help or hurt America's largest EV
1:08
maker and President Trump's right hand man.
1:19
What's this one? That's
1:20
unleashing American energy, sir?
1:23
On January 20th, the Trump administration
1:26
issued an executive order that took aim at a variety
1:30
of "green" government policies.
1:32
Many that have helped Tesla and continue to help it are
1:36
on the chopping block.
1:37
The order states the administration's aim to
1:41
eliminate subsidies for EVs,
1:42
prevent states from setting their own EV targets,
1:46
and pause the disbursement of funds for EV charging
1:49
stations, among other things.
1:53
Trump's head of transportation,
1:55
Sean Duffy, is also looking to roll back federal rules
1:58
that limit vehicle emissions.
2:00
There are, of course, questions as to how much
2:03
Trump can do and how much Republicans are going to
2:05
want to do. Some rules, like the EV tax credits for
2:09
buyers, are in the Inflation Reduction Act of 2022.
2:13
Repealing those would take an act of Congress,
2:15
but there are other means at the administration's
2:18
disposal. Say you are a company that has an approved
2:21
loan from the Department of Energy that hasn't been
2:23
funded yet.
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