COINOTAG News reports that the accelerated expiration of the $7,500 electric vehicle tax credit, mandated by the recent tax legislation, is set to significantly impact Tesla’s financial outlook by the end of 2024. Originally scheduled to phase out later, this change advances the timeline by seven years, potentially reducing Tesla’s annual profits by an estimated $1.2 billion, according to JPMorgan analysts. The move has sparked considerable backlash from industry leaders, including Elon Musk, who recently resigned from his White House advisory role and has actively lobbied key Republican lawmakers, including House Speaker Johnson, to retain the tax incentives.
Market reactions have been swift, with Tesla’s stock experiencing a notable decline. Data indicates a peak intraday drop exceeding 5.5%, settling at a 3.6% decrease and a share price near $320. This development underscores the sensitivity of the electric vehicle sector to regulatory changes and highlights the broader implications for investor confidence and market valuation within the renewable energy automotive industry.