Tesla (TSLA) should perform well despite President-elect Donald Trump’s plan to discontinue the $7,500 consumer tax credit for electric vehicles, Wedbush said in a note to investors.
Removing the incentive would particularly hurt General Motors (GM), Ford (F), Stellantis (STLA) and Rivian (RIVN), but Tesla’s “unmatched” scale and scope would allow it to use the lack of a tax credit to outmatch Detroit competitors, Wedbush said.
Other incentives and programs could still support US-built EVs, Wedbush said, adding that Tesla Chief Executive Elon Musk will “have a big seat at the table as these EV discussions happen within the Trump transition team.”
Wedbush maintained its outperform rating and $400 share price target on Tesla stock.