One Big Loser of Trump’s Second Term: Elon Musk

Elon Musk’s Tesla stock is falling on Thursday after Reuters reported that the Trump transition team plans on axing Biden-era tax credits on electric vehicle purchases.

The president-elect wants to kill the $7,500 tax credit along with a larger tax reorganization. This will likely do damage to the E.V. industry and cause prices to spike. E.V. companies Rivian and Lucid, along with Tesla, have each taken hits on the stock market. Rivian fell by over 12 percent, Lucid fell by 3 percent, and Tesla fell by 5 percent.

And while this move does seem contradictory to his interests, the richest man on earth remains bullish. His aides parroted earlier points he made about this move, calling it “devastating” for his competitors, while Tesla would only take a small blow.

Smoother sailing was expected for Musk and his companies given his proximity to Trump this campaign cycle. The billionaire was a constant presence on the trail and has been with the president-elect constantly since his win, even joining Trump on diplomatic phone calls. Trump also placed Musk, along with Vivek Ramaswamy, in charge of the Department of Government Efficiency, a position that little is known about at this time.