ELECTRIC SHOCK

Musk’s Trump Endorsement Could Backfire as Tesla Sales Set to Stagnate

President Trump’s anti-green policies could damage one of Musk’s most valuable businesses.

Elon Musk’s backing of Donald Trump could become an extraordinary act of self-sabotage as Wall Street banks have predicted Tesla sales to rise more slowly than he expected, the Financial Times reported. Analysts at major international banks including Morgan Stanley and Barclays said the president’s anti-green policies will hit the sales of electric vehicles in the U.S. Specifically, banks believe that Trump’s order to scrap Biden-era subsidies and “ill-conceived government-imposed market distortions” could make life especially hard for his friend Musk. The South African-born billionaire who is now advising the Trump administration had predicted an increase in sales of Teslas of up to 30 percent but banks believe the growth will only be half as strong—when Tesla sales had been growing at a rate of 40 percent. Some analysts also suggested that Tesla had failed to innovate in recent years. Ginny Buckley, the founder of a website which advises people on buying electric vehicles, had especially damning words to say about Musk’s car business: “Tesla was a market leader, and still is in many ways, but people are getting turned off.”

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Maurício AlencarFreelance Reporter

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