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Tesla News
Insider
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Why Musk supports Trump getting rid of EV tax credits
- Tesla's lead in the US EV market has started to slip slightly, losing its market share for the first time.
- Elon Musk has expressed support for an end to government subsidies, including EV tax credits, saying it would be devastating for lender competition.
- However, it is also believed that removing tax credits could mean the likes of Tesla would benefit, especially if the cancellation of subsidies pressures smaller rivals enough to stall their growth or even fold.
- Tesla has had a longer time than many competitors to benefit from subsidies. The company's market lead is well-established, and its pricing strategies and use of a profitably diverse range of vehicles is putting pressure on rivals.
- In another attempt to maintain its lead, Tesla cut prices on many of its cars over the past year, instigating an industry-wide price war.
- Of the nearly 600,000 EVs sold in the US in the first half of 2023, half were made by Tesla. Ford, in second place, accounted for just over 7% of EVs sold in the same period.
- Eliminating the consumer tax credit, part of President Joe Biden's Inflation Reduction Act, would need congressional approval. It's not yet clear if Trump and the incoming Republican-controlled Congress would also target other IRA tax incentives.
- In October, the Alliance for Automotive Innovation, an industry group, urged Congress to keep the tax credits, but reports of a potential ending of subsidies have worried investors.
- Tesla's autonomy strategy has focused heavily on EV technology and many company leaders have urged potential investors to think long-term about the company's future potential.
- Tesla shares fell about 5% following news of the discussed end to the EV credits and pre-IPO electric truck manufacturer Rivian shares fell 11%.
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Macdailynews
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President Trump’s second term is good news for Apple, TikTok, and Tesla – Gene Munster
- Gene Munster of Deepwater Asset Management believes President Trump's second term will be positive for tech investors. Mega-cap and small-cap tech sectors have a green field ahead to capitalize on the AI paradigm shift, a much bigger event than political policies. Three reasons for the market move include reduced regulatory environment, money on the sidelines jumping back into the market and proposed corporate tax cuts. It is expected that Apple will avoid the proposed blanket tariffs because Cook's relationship with Trump is strong. TikTok will be around for a while because Trump declared Facebook as an enemy of the people. Tesla is likely to benefit as Elon Musk is close to the President.
- Apple has a strong and innovative global impact, making it a brand that Trump would be reluctant to damage. The outcome of Apple's search deal with Google is viewed as a coin toss. Additionally, the DOJ is unlikely to pressure Apple regarding App Store take rates.
- Trump posted a tweet stating 'If you get rid of TikTok, Facebook and Zuckerschmuck will double their business. I don't want Facebook, who cheated in the last Election, doing better. They are a true Enemy of the People!' which implies that TikTok will be protected.
- Trump's administration is viewed as meaningful positive for Tesla, as they are a big win for the company's autonomy ambitions and relationships with Trump will likely make it easier for FSD to receive NHTSA approval. Tesla's corporate tax rate could also decline from 21% to 15%, and tariffs could exclude Chinese EV competitors from the US market.
- Apple's iPhone users are worth significantly more than Android users to developers, advertisers, third-party accessory makers, musicians, TV show producers, movie producers, book authors, carriers, retailers, podcasters and more. Losing Apple product users leaves Google with just a bunch of Android settlers and Windows PC sufferers. Google's ad business will suffer as a result.
- Gene Munster believes that if the deal between Apple and Google gets voided, it would be a net positive for Google and increase its operating income despite the company's recent comments that voiding the agreement would have unintended consequences. However, this statement is refuted as Apple has a lock on the top demographics, iPhone, and iPad users are extremely demographically desirable to every company that likes to make profits.
- Google gave away Android to partners who pushed the product into the hands of the exact opposite type of user that Google needed for Android to truly thrive. Hence, Android is a backwater of second-rate app versions that are only downloaded when free or ad-supported. Whereas, iOS users are the ones who buy apps, accessories, and other products.
- Foxconn, the major assembler for Apple, reported a 14% rise in third-quarter net profit, driven mainly by strong AI server demand.
- Apple released 'The Weeknd: Open Hearts,' an immersive music experience from seven-time diamond-certified on Apple TV+. Mythic Quest's fourth season is all set to release, which is also an Apple TV+ hit comedy.
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Insider
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Trump tapped Elon Musk to oversee government efficiency. Here's how he's cut costs at his own companies.
- President-elect Donald Trump tapped Elon Musk to co-lead a new Department of Government Efficiency to reduce government spending.
- At companies like X, Tesla, and SpaceX, Musk is known for modeling an intense work ethic and making drastic workforce reductions to lower costs.
- When Musk took over Twitter in 2022, he ended the company's remote work policy and free office lunches.
- Musk required employees to start paying for office lunches that had previously been free, told employees to expect 80-hour workweeks.
- Musk cut around 50% of Twitter's staff and set an expectation for those who remained to "work 24/7."
- Tesla's "Anti-Handbook Handbook" details the high bar the company sets for employees, instructing them to be self-reliant and do everything they can to solve problems, even if it means forgoing office protocol or reaching out to Musk directly.
- Musk also sent a memo in 2018 advising Tesla employees to "walk out of a meeting or drop off a call as soon as it is obvious you aren't adding value."
- In 2018, Musk said he spent nights sleeping on a couch and the floor at Tesla factories while the company ramped up production on the Model 3 sedan.
- In April, Tesla laid off 10% of its workforce as Musk said the company needed to be "absolutely hard core about headcount and cost reduction."
- In 2019, Musk laid off 10% of SpaceX employees in order to "become a leaner company," a SpaceX spokesperson previously told Business Insider.
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Arstechnica
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Trump team puts EV tax credit on the block, Tesla is on board: Report
- The Trump administration is aiming to remove the IRS clean vehicle tax credit, making electric vehicles and plug-in hybrids less affordable, according to Reuters.
- Under President Joe Biden's climate legislation, the clean vehicle tax credit was revamped with new eligibility criteria including domestic production requirements, price caps, and income limits.
- This change aimed to address the criticism that the tax credit mainly benefited the wealthy.
- However, leased electric vehicles are exempt from these conditions, providing a loophole for eligibility.
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Teslarati
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Tesla set to launch new V4 Cabinet enabling fastest Supercharging speeds yet
- Tesla is set to launch the new V4 Cabinet starting in 2025, enabling the fastest Supercharging speeds for both passenger vehicles and the Semi.
- V4 Superchargers bring 350 kW charging speeds, but the V4 Cabinet will bridge the gap for EVs with a 400 to 1000V architecture for even faster charging.
- The V4 Cabinet will bring supercharging speeds up to 500kW for cars and 1.2MW for the Tesla Semi.
- Tesla plans to open the first V4 Cabinets next year, with permits already underway, but the locations have not been announced.
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Insider
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EV makers slide on report Trump wants to scrap EV tax credit
- EV stocks fell on Wednesday after a report said President-elect Trump plans to cut EV tax credits.
- According to a report from Reuters, Trump's transition team has drawn up plans to end the $7,500 consumer tax credit for electric vehicle sales.
- Ending the tax credit would likely hurt EV sales, but Tesla representatives supported ending the subsidy.
- Other pieces of the Inflation Reduction Act could be hard to roll back, as the money for many programs has already been distributed.
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Insider
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Elon Musk is hiring for DOGE. Here's what he's looking for.
- Elon Musk's Department of Government Efficiency is looking for the "top 1%" of people.
- Applicants must be willing to work 80+ hours per week.
- The department aims to cut government spending and regulations.
- Musk will create a leaderboard showcasing government spending waste.
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Teslarati
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Trump White House plans to ‘kill’ EV tax credit: report
- President-elect Donald Trump’s White House reportedly plans to kill the electric vehicle tax credit, which can take up to $7,500 off the price of an EV at the federal level.
- The tax credit was revised by the Biden administration as it removed the previous cap that manufacturers had.
- However, a new White House administration with less leniency plans to eliminate the tax credit altogether, the report suggests.
- Tesla would be fine if the credit disappeared, but other companies like General Motors, Ford, and Rivian would likely feel its impact severely.
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Teslarati
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SpaceX readies for sixth Starship test launch: here’s when it could happen
- SpaceX is preparing for its sixth test launch of Starship, as it aims to push the envelope in preparations for another potential 'catch' next year.
- CEO Elon Musk plans to attempt catching both the booster and upper stage, but this likely won't happen until next year.
- The next launch may not include the upper stage catch, but the possibility remains.
- SpaceX has rolled Starship to the launch pad, indicating the sixth test launch is nearing.
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Teslarati
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Tesla gets a fresh price target and an interesting suggestion from Jefferies
- Tesla's price target has been raised by Jefferies from $195 to $300, a 30% increase.
- Jefferies analysts suggest Tesla take advantage of its recent stock surge, fueled by the presidential election.
- The firm believes Tesla's expanding ventures and advancements in self-driving and battery technology contribute to its positive outlook.
- Jefferies also recommends a capital raise to support Tesla's ambitious projects such as Robotaxi and humanoid robots.
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Silicon
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Tesla Recalls 2,431 Cybertrucks Over Propulsion Issue
- Tesla announced its sixth recall of its Cybertruck vehicles, this time recalling 2,431 due to defective drive inverters that could result in a crash.
- The vehicle was made available for sale in November 2023 and Tesla has been affected by delays due to production problems and battery supply constraints.
- This is a physical recall for the vehicle and cannot be rectified with an over-the-air software update.
- Faulty inverters could cause drivers to lose the ability to apply torque to their vehicles using the accelerator pedal, resulting in loss of propulsion.
- Tesla issued previous recalls in April due to a fault that caused the accelerator pedal to stick, and a further recall in June over issues with Cybertruck windscreen wipers and exterior trim.
- The faulty inverter could cause the driver to lose propulsion, resulting in a crash.
- The recall will involve 3 hours of free replacement work for Cybertruck owners.
- Tesla is currently facing four documented NHTSA investigations over possible safety defects and a criminal probe by the US Department of Justice over claims its vehicles can drive themselves.
- Elon Musk's appointment to co-leading a non-government department has raised concerns that this could result in even less regulation in the United States.
- The concern is this could result in changes to federal motor vehicle safety standards.
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Insider
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An elite hedge fund slashed its Nvidia and Tesla bets last quarter — and boosted its GameStop stake
- Renaissance Technologies, an elite hedge fund, reduced its stake in Tesla and Nvidia while increasing its position in GameStop last quarter.
- The fund cut its Tesla stake by 86% and halved its Nvidia wager.
- On the other hand, Renaissance Technologies raised its GameStop position by over 40% to 1.9 million shares.
- Renaissance Technologies relies on algorithms to make trades, resulting in significant changes to its stock portfolio each quarter.
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Insider
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At Tesla, some are celebrating stock gains — others worry Elon will lose focus
- Tesla CEO Elon Musk's involvement with Donald Trump has sparked mixed reactions within the company.
- Some employees believe Musk's role in the government could benefit Tesla, while others want him to focus more on the company.
- Many employees are celebrating the surging stock price, which forms a significant part of their compensation.
- However, concerns are raised about the potential roadblocks Trump's policies may pose to Tesla's mission of sustainable energy.
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Insider
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The founder-CEO of Xiaomi is taking a leaf out of Elon Musk's Tesla playbook, posting a picture of himself taking a nap on the factory floor
- Xiaomi CEO Lei Jun celebrates the production of 100,000 units of Xiaomi SU7 electric vehicles in just 230 days.
- Lei Jun posts a photo of himself sleeping on the factory floor to show his dedication.
- Xiaomi's SU7 is the company's first electric vehicle, available in four versions.
- Despite the success, Xiaomi's EV branch reports a loss of $252 million due to high production costs.
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