Did Elon Musk undermine Tesla’s future by putting Donald Trump in the White House?

While Elon Musk seems convinced that Donald Trump’s rise to power could be beneficial to his companies, analysts predict the opposite. The American firm JP Morgan estimates that Tesla’s profits could collapse by 40% under the new administration.

According to the latest calculations, Elon Musk would have spent more than $270 million to help Donald Trump in his race for the White House. A colossal sum that the billionaire sees as an investment in the future. He is convinced that with this new government, his companies, notably Tesla and SpaceX, will do better.

He also sees a personal interest in it: his fortune has jumped by $200 billion since the election, mainly thanks to the skyrocketing price of Tesla shares. But a new report from JP Morgan offers another reading of the future. The firm believes that Tesla has the most to lose with the arrival of Donald Trump.

Plummeting profits for Tesla?

According to projections by Ryan Brinkman, analyst at the American institute, the Austin firm could see its profits fall by 40% (or around $3.2 billion). In question? The elimination of the $7,500 federal tax credit for electric vehicles, a decision that worries the entire industry.

Also readDonald Trump is (already) preparing to give Tesla a boost

Oddly enough, Elon Musk thinks that stopping the bonus wouldn’t be such a bad idea. He believes the move will hurt his competitors, but not his business. That’s not what JP Morgan thinks. Ryan Brinkman specifies that “ Tesla does not seem on track to dominate the global auto industry ».

Tesla had a strong fourth quarter, but its full-year global sales were not as strong as expected, with 1,789,226 vehicles delivered, slightly lower than in 2023. This is the first time in more than ten years that the company has not increased its annual sales. A negative signal sent to investors.