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Cailianshe News, August 12 (Edited by Zhao Hao)On Monday (August 12th, Beijing time), Elon Musk said on social media that at 8 pm Eastern Time (8 am Tuesday, Beijing time), he will have a live conversation with former US President and Republican presidential candidate Donald Trump.

Source: Musk’s social media account

Musk added that the conversation is unscripted and there are no restrictions on the topic, "so it should be very interesting!" It is not difficult to imagine that the topic of electric vehicles will basically not fall, which may makeTeslaStock investors are on edge.

"I support electric cars, and I have to because Elon supports me very strongly," Trump said at a rally earlier this month. But he added that he just doesn't support the Biden administration's policy of "making everyone use electric cars."

Two months ago, a Republican congressman from Idaho told the media that Trump had said that if he moved into the White House in November this year, Biden’s electric vehicle policy would be revoked. "He (Trump) said that the policies would be completely reversed. He made his position very clear-he opposed our existing policies."

Three weeks ago, Trump said: "I will end the electric vehicle mandate on day one, saving the American auto industry from total destruction and saving American consumers thousands of dollars per car." Musk echoed at the time, saying Tesla did not need subsidies to survive.

However, this is bound to be a huge negative for Tesla investors, because it is well known that electric vehicle policies, including government loans and tax credits, are crucial to the rapid growth of the electric car maker.

The Inflation Reduction Act passed in 2022 provides that electric vehicles assembled in North America can receive a tax deduction of up to $7,500. Tesla has said that the tax credit could bring the company up to $250 million in revenue each quarter.

In fact, Tesla continues to lobby the U.S. and state governments for benefits advocated by the Democratic Party. In February of this year, Tesla urged the Biden administration to allow California to implement stricter automobile emissions regulations than other parts of the United States in a document submitted to the Environmental Protection Agency.

Previously, Dan Ives, a well-known "Tesla bull" and analyst at investment bank Wedbush, said that the reduction in U.S. electric vehicle subsidies may help Tesla expand its advantages, establish a larger gap with its competitors and achieve technological leadership.

But Guggenheim stock analyst Ron Jewsikow pointed out that the tax credit is an important condition for increasing the affordability of Tesla electric vehicles, and Trump's cancellation of this subsidy is a negative factor for the entire industry.

On the other hand, Musk's "getting too close" to Trump may not be good for Tesla. According to data from the analysis company CivicScience, as of July 16, Tesla's brand support among Democrats has dropped from 39% in January to 16%, and its support among Republicans has dropped from 36% to 23%.

Tesla short seller Mark Spiegel said Musk has alienated most of Tesla's buyers, which will destroy Tesla's business.

(Cailianshe Zhao Hao)