Unhedged What makes Tesla run?
25 snips
Jun 12, 2025 Tesla's stock is a wild ride, heavily influenced by market perception and political ties. The unpredictable relationship between Elon Musk and political figures, especially regarding EV tax credits, plays a crucial role in shaping investor sentiment. The discussion dives into how government policy changes can sway Tesla's financial health amidst ongoing competition. Plus, there's a light-hearted detour into summer fashion and rising copper prices, showcasing the quirky connections in the investment landscape.
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Tesla Stock Driven by Politics
- Tesla's stock fluctuations don't closely track fundamentals but rather government policies and political relationships.
- Government tax credits and subsidies constitute a large part of Tesla's earnings and stock valuation.
Biden Bill Threatens Tesla Earnings
- The proposed "big, beautiful budget bill" could remove EV tax credits and carbon credit sales that currently bolster Tesla's earnings.
- This legislation could wipe out about half of Tesla's operating profit if passed as is.
Partisanship Impacts Tesla Sales
- Tesla gains sales in Republican counties offset by losses in Democratic areas, showing partisanship affects demand.
- Declines in Europe and supply chain issues add to overall struggles in Tesla sales.