Trump's EV Policy Shakes Market, Tesla's Upcoming FSD Upgrade, And Inside Trump's $1.5M Beast: This Week In Mobility

As the dust settles on President-elect Donald Trump's inauguration, the electric vehicle (EV) market braces for potential policy changes that could significantly impact its trajectory. Meanwhile, Tesla (TSLA) continues to make strides in its Full Self-Driving (FSD) technology, with an upcoming upgrade set to further solidify its market position. Let's dive into the week's top mobility news and analyze their implications for investors.

Trump's EV Policy Shakes Market

President Trump has vowed to roll back strict vehicle emissions standards and end other government support for electric vehicles. His anti-EV stance, if fully implemented, could have a significant impact on the overall EV market and Tesla's sales in the long term. Wedbush analysts expect the Trump presidency to be a clear overall negative for the EV industry, with the removal of the $7,500 EV tax credit making electric cars more expensive for consumers (Wedbush, 2024).

However, Tesla might be less affected by the removal of the tax credit due to its longer history of making profitable EVs and its unmatched scale (Wedbush, 2024). Additionally, higher tariffs on Chinese imports could push away cheaper Chinese EV players like BYD and Nio from flooding the U.S. market, further buffering Tesla's lead (Wedbush, 2024).



Trump's close ties to Tesla CEO Elon Musk could potentially deter him from completely scrapping all of Biden's EV initiatives, which might provide some level of support for the EV industry (AP, 2024). Moreover, a Republican-led Congress could protect the billions of dollars earmarked by Biden-era legislation to finance the construction of EV and battery plants in red states, further supporting the EV industry (AP, 2024).

Tesla's Upcoming FSD Upgrade

Tesla has been making significant advancements in its Full Self-Driving (FSD) technology. The company has recently rolled out FSD Supervised v13.2.1 to customers with Hardware 4 (HW4) or AI4 computers, and it is expected to release a new version for those with Hardware 3 (HW3) computers by the end of the year. These updates have been well-received by customers, with positive reviews highlighting improved obstacle avoidance and navigation capabilities.

Tesla's advancements in FSD technology are likely to have a positive impact on the company's stock price and market position. Increased customer satisfaction and loyalty, a competitive advantage over other automakers, potential for new revenue streams, regulatory approval, and expansion in new markets are all factors that could contribute to Tesla's success.

Inside Trump's $1.5M Beast

Upon his inauguration, President Trump once again rode in the Presidential state car, a custom Cadillac nicknamed "The Beast." This heavily armored vehicle, weighing about 20,000 pounds, comes equipped with a refrigerator of the president's blood type and doors as heavy as those on a Boeing 757 jet. While not directly related to the EV market or Tesla's FSD technology, the Beast serves as a reminder of the importance of innovation and security in the automotive industry.

In conclusion, Trump's EV policy changes could have a significant impact on the overall EV market and Tesla's sales in the long term. However, Tesla's advancements in FSD technology and potential strategic moves could help it maintain its competitive edge in a less supportive regulatory environment. As the market continues to evolve, investors should stay informed about the latest developments and make strategic decisions based on the available data and analysis.