JPMorgan warns Tesla could lose 40% of profits under Donald Trump
Tesla could see a 40% drop in profits with Donald Trump’s arrival at the White House, despite the strong friendship between the automaker’s CEO, Elon Musk, and the president-elect.
After a decline in sales during the fourth quarter of 2024, JPMorgan has warned that the company’s future looks uncertain.
Analysts at JPMorgan predict that Donald Trump’s proposal to remove tax credits for electric vehicles and related subsidies could jeopardize around 40% of Tesla’s profits.
The company reported a 6% decline in sales during the last three months of the year, a trend that could continue into 2025.
"Tesla does not appear to us on track to dominate the global auto industry amidst the electrification transition, which we view as only the starting point for present valuation," the analyst Ryan Brinkman wrote in a note to clients on Friday morning.
(QG - Business Insider / Picture: ©Unsplash)