Trump Vows Tesla Will Thrive Again
GuruFocus ·
Tesla (TSLA) tumbles nearly 9% after Q2 net income falls 22% and automotive revenue plunges 16% Y/Y.
They reported revenue down 8% and deliveries off 14%, sending the stock down 8.98% after hours on Wednesday as investors reeled from the weak numbers.
Tesla's $7,500 federal EV tax credit expires on Sept. 30 and its regulatory credits, a key profit driver, face uncertainty under the new tax?and?spending bill. Analysts caution that the subsidy cliff and execution risks could weigh on margins for quarters to come.
Meanwhile, Musk's political commentary and high?profile tweets have unsettled some shareholders, and several hedge funds have already trimmed TSLA exposure after the earnings miss.
President Trump stepped in, pushing back on critics who say his legislation will gut Tesla's subsidies.
Everyone is stating that I will destroy Elon's companies by taking away some, if not all, of the large scale subsidies he receives from the U.S. Government, he said. This is not so! I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before! He added that rolling back regulations will free up capital for expansion and innovation at Tesla.
Source:
GuruFocus