Gary Black questions Elon Musk’s removal of EV credits after Tesla’s European sales drop: ‘Not sure how the math works’ – Tesla (NASDAQ: TSLA)
Tesla Inc.. Tesla The U.S. market faces potential headwinds as European data shows sales plunge after EV subsidies are lifted, raising concerns about the president’s influence Donald TrumpPlans to eliminate $7,500 electric vehicle tax credit.
what happened: Gary BlackManaging Partner Future Fund Co., Ltd.It was highlighted on Monday that Tesla’s sales fell by 34% year-on-year after France and Germany canceled incentives for electric vehicles, and by 41% in Germany. Data from Tesla researcher Troy Teslike suggests similar challenges may arise in the U.S. market.
“Not sure how the math works out to eliminate the EV credit bullishness,” Black wrote on X.
Tesla’s performance in different European markets in 2024 was mixed, with total sales falling from 365,171 vehicles in 2023 to 326,084 vehicles, a decrease of 10.7%. There has been a significant decline.
The timing of Trump’s tax credit changes could have a significant impact on Tesla’s 2025 deliveries. Teslick suggested that maintaining current eligibility standards while announcing a six-month phase-out would be best for Tesla’s sales performance, giving customers time to use their points before canceling.
why it’s important: CEO of Tesla Musk It has previously supported ending electric vehicle subsidies and said on the company’s second-quarter earnings call that while the impact on Tesla would be “mild,” it could be “devastating” for competitors.
However, Teslike believes that without the tax credit, Tesla vehicles would actually cost $7,500 more than luxury gasoline-powered competitors. BMW, Benzand other manufacturers.
The debate comes as Tesla reported global deliveries of 1.79 million vehicles in 2024, down slightly from 1.81 million in 2023, underscoring the importance of key market policy decisions to the company’s growth trajectory.
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