(Finance) – According to analysts of JPMorgan the 2024 US presidential election could cost a Tesla up to 40% of profits due to the potential new economic policy of Donald Trump. However, the American investment bank maintained its rating “Underweight” on the electric vehicle giant’s stock, with a target price of $135 for December 2025.
JPMorgan’s note comes after Elon Musk’s automaker published delivery data for the fourth quarter of 2024, data in line with JPMorgan’s estimates but lower than market expectations, a gap that has raised some concerns about useful of the company in 2024. The biggest doubts concern the potential elimination of important subsidies governments that have a significant impact on Tesla’s profitability, including the tax credit guaranteed by the federal government for the purchase of electric cars produced in the United States and the ability to sell ZEV credits from the California Air Resources Board (CARB).
According to the bank, these factors could cost Tesla 3.2 billion dollarsequal to approximately 40% of the 8.3 billion dollars estimated by Tesla in EBIT for 2024. Analysts have however preached caution while underlining how Musk’s car company is particularly vulnerable to the changing American regulatory environment.
Meanwhile, good news comes from the American automotive sector. Is General Motors That Ford they made it known that 2024 was the best year for sales of their cars since 2019. GM reported 2024 sales of more than 2.7 million vehicles, up 4.3% from the previous year. The car manufacturer, which leads the sales ranking in the US, distributed 2.9 million units in 2019. Recorded an increase of approximately 50%, compared to last year, in sales of electric vehicles to over 114,400 units.
Ford instead, it reported sales of 2.08 million vehicles – a slight increase from just under 2 million in 2023. In 2019, the automaker sold 2.42 million vehicles in the United States. For Ford, sales of electric and hybrid vehicles together increased 38.3% year over year.