Tesla Stock Plummets as Trump Launches Ruthless Attack EV Mandates and California Gas-Bans…

Tesla’s stock just got yeeted, dropping over 3% as Donnie Politics, now back in the Oval Office, made it clear he’s not a fan of EV subsidies. On Day One of his presidency, he torched 78 Biden-era executive orders like they were written on napkins, including the friendly little suggestion that half of all new cars sold in the U.S. by 2030 should be electric. Whereas, those $7,500 EV tax credits? Trumps scrapping them too—all while Big Oil is having themselves a day. 

(Source: Giphy) 

Now with that said, it wasn’t just Tesla that dipped on the move. Lucid plummeted 7%, and Rivian drove off a -5% cliff. Basically, anyone who’s been hitching their wagon to the electric dream got slammed. Meanwhile, GM and Ford managed to scrape together some gains because naturally, the market thinks Trump’s gas-guzzling visions might actually help them. 

For Tesla though, this is a mixed bag. Musk is already on record saying the rollback would hurt competitors more than Tesla itself. And if we’re being honest, he’s probably right. Tesla’s already built its empire, and its cars can sell without the $7,500 federal coupon attached. But the smaller players? They’re toast without the government lifeline. Rivian and Lucid are still trying to figure out how to make a car that doesn’t cost more than a starter home. Kill the subsidies, and they’re roadkill.

(Source: Yahoo Finance) 

Of course, the EV market, for all its innovation and hype, still leans heavily on Uncle Sam to stay competitive. Sure, the tech is sexy, but without tax breaks and infrastructure investment, it’s a tough sell to the average consumer who just wants a truck that hauls and doesn’t need a two-hour nap at a charging station. Take away the government support, and the whole “green revolution” starts to look like a boutique option for coastal elites rather than a viable future for the masses.

Meanwhile, Trump’s move to revoke California’s zero-emission vehicle rules is a direct middle finger to the state that’s been trying to “lead” the EV charge. California’s plan to ban gas-only car sales by 2035 was ridiculous ambitious, sure, but it was also a blueprint for other states to follow. Now, with Trump telling the EPA to pull the plug on state waivers, it’s open season for automakers to keep cranking out combustion engines. Which means one thing, and one thing only… “‘Merica!”, amirite? 

(Source: Reuters) 

And honestly, it’s not necessarily a bad move. Trump is basically saying why try to reinvent the wheel here? It doesn’t necessarily mean he’s tanking the innovation of EV’s, instead, he’s saying let’s double down on the things that are working in the U.S. and stop shoving something down everyone’s throats (a.k.a. California’s gas car ban). 

Now obviously do what you will with this information. But whether you love him or hate him, Trump is making moves. For today, Tesla investors are left holding their breath—and their losses all while their CEO is leading D.O.G.E. to keep our tax dollars from going to useless and meaningless federal agencies. 

(Source: Giphy)

So yeah, it’s still a win in the big picture right? As always place your bets accordingly, friends—and stay safe and stay frosty! Until next time… 

P.S. Trump is officially back in the White House, meaning we could see fireworks at any moment. Make sure you are prepared and deciphering the market for the most explosive opportunities with Stocks.News premium. Don’t say I didn’t warn ya! 

Stocks.News holds positions in Tesla and Ford as mentioned in the article.