Gary Zhou 
- 📈 Wedbush analyst Dan Ives predicts a Trump presidency would be bullish for Tesla.
- 📉 However, a Trump presidency might be negative for the rest of the EV sector.
- 📺 Ives made his comments during a segment on CNBC’s Last Call.
- 🚗 Former President Trump has expressed his admiration for Elon Musk and Tesla.
- 💬 Trump believes many people will want to buy electric cars, despite his anti-EV rhetoric.
- 📞 Elon Musk mentioned Trump calls him occasionally and described him as “very nice.”
- 🚀 Trump is a big fan of Tesla’s Cybertruck.
- 🇺🇸 Ives thinks Trump’s support of Tesla contrasts with Biden’s focus on union-made EVs.
- ♻️ Tesla can compete without federal tax credits due to its achieved economies of scale.
The recent comments by Wedbush Securities analyst Dan Ives bring a fascinating, albeit unexpected, perspective: a potential Trump presidency could actually benefit Tesla, despite it possibly being detrimental to the wider electric vehicle (EV) sector. In this blog post, we analyze these claims, dive into the context behind them, and explore what this could mean for Tesla and the broader industry.
The Analyst’s Prediction
The Bullish Outlook for Tesla
Dan Ives, a well-known analyst at Wedbush Securities, recently made waves by suggesting that a potential Trump presidency would be bullish for Tesla. This might come as a surprise given Trump’s historically anti-EV stance. However, Ives argues that Trump’s favorable opinions about Elon Musk and Tesla could translate into policies that might benefit the automaker specifically, even if they don’t support the broader EV market.
CNBC’s Last Call Segment Highlights
Ives’ comments were shared during a segment on CNBC’s Last Call, where he highlighted that while Trump’s policies might generally oppose the EV sector, his admiration for Elon Musk and Tesla’s innovation and market position could lead to inclusive benefits for Tesla.
Trump’s Stance on EVs and Tesla
Duality in Trump’s Views
While Trump has shown resistance to electric vehicles overall, he has expressed admiration for Elon Musk, the founder and CEO of Tesla. During a recent rally, Trump stated, “I like Elon, I like him, and I think a lot of people are going to want to buy an electric car.” This seemingly contradictory stance indicates that while Trump may oppose broader EV incentives, he still recognizes the market value and innovation brought by Tesla.
Musk and Trump: A Curious Relationship
Musk’s Take on the Former President
Elon Musk has confirmed his cordial relationship with Trump, noting that the former president often reaches out to him sporadically. Musk described Trump as “very nice” and speculated that Trump’s positive outlook on Tesla may be influenced by his social circle’s adoption of Teslas and his particular pride in the Cybertruck.
The Broader EV Sector: A Different Story
Why Other EV Makers Might Suffer
According to Ives, a Trump presidency could roll back EV incentives that benefit the broader industry. This has the potential to hurt other EV makers who are still dependent on government subsidies to compete with traditional internal combustion engine vehicles.
The Biden Administration’s Focus
Ives contrasts Trump’s hypothetical stance with the current Biden Administration’s focus on union-made EVs, pointing out the comparative neglect Tesla has experienced under Biden’s policies. The adminstration’s emphasis on union-supporting companies might mean that a Trump presidency could bring Tesla to the forefront.
Tesla’s Competitive Advantage
Economies of Scale
Tesla is well-positioned to thrive even without federal tax credits, thanks to its established economies of scale and robust market presence. This contrasts with newer and smaller EV manufacturers who rely heavily on these incentives to make their vehicles competitively priced.
Conclusion: The Strategic Implications
The idea that a Trump presidency could benefit Tesla more than the broader EV industry is an intriguing one, underscoring the complex interplay between political influence and market dynamics. For investors, stakeholders, and industry analysts, this perspective from Dan Ives provides a lens through which to assess the future of Tesla in a politically evolving landscape.
