It’s no secret that Donald Trump has a high regard for Tesla CEO Elon Musk – and more importantly, he knows he can win the votes of Musk’s enthusiastic fan base. Musk, in turn, also has a positive view of Trump and appears to have a significant influence on the presidential candidate. Nevertheless, the Biden administration’s actions have so far been very positive for Tesla.

The carmaker has taken advantage of several incentives for electric vehicles, including a $7,500 tax credit for electric cars made in the US and the removal of the 200,000 vehicle eligibility cap that previously disadvantaged Tesla.
However, Republicans are generally opposed to government support for electric vehicles and renewable energy, preferring a free market approach.

Trump has clearly indicated that he would immediately abolish the federal mandate for electric vehicles if elected. Despite this, Musk expects Tesla to do even better under Trump’s leadership, regardless of the continuity of the favourable regulatory environment provided by the Democrats.

In addition, Tesla rarely spends on splash advertising, which also contributes to low costs and higher margins. In the last quarter, Tesla achieved an adjusted profit margin of 7%, despite facing industry challenges and declining volumes.

The company delivered an impressive 17% margin in fiscal 2022, when the electric vehicle market was significantly more favorable.