California’s plan to offer electric car tax credits if President-elect Donald Trump cuts off federal incentives has a catch: It may not include rebates for customers of Tesla, the most popular EV brand, eliciting a strongly worded response from the company’s Trump-friendly CEO Elon Musk. Much has been made in recent months about Trump’s potential repeal of the federal EV tax credit and the potential drag it would be on sales for Tesla, considering the rebates dangle a hefty effective discount to prospective car buyers. Though Wall Street analysts have largely agreed the end of the federal program would hurt other EV makers more than they would Tesla given the Musk-led company’s dominant market share, the potential for new roadblocks in the crucial California market may provide a new challenge for the company. “If credits go away, further pricing actions may be needed,” UBS analyst Joseph Spak wrote in a Monday note to clients, teasing the potential for more price cuts from Tesla, which would eat into the firm’s wobbling profit margins. Read Article

Source: Forbes November 25, 2024 22:04 UTC