Tesla Inc.’s Chief Financial Officer, Vaibhav Taneja, has cautioned that President Donald Trump‘s regulatory changes could impact the EV giant’s inventory. The repealing of the $7,500 EV credit is one of the first changes that will affect the company’s business in the near term.
What Happened
The news came during Tesla’s earnings call, where Taneja outlined the potential consequences of the regulatory changes. He stated that Tesla has limited supply of vehicles in the US this quarter due to lead times for auto parts to build cars. As a result, the company had already rolled out planned incentives and will start bearing them back as they start to sell.
Urgent Call to Action for Customers
Taneja urged customers in America to place their orders for cars now, as the company may not be able to guarantee delivery of orders placed in the later part of August and beyond. This warning comes as Tesla reported a $22.5 billion revenue during its earnings call.
Tesla’s Ambitious Targets and Plans
Despite the challenges, Tesla’s CEO Elon Musk has set an ambitious target of operating enough Robotaxis in the U.S. to serve half the country’s population by the end of the year. The company also shared plans to release an affordable trim level of the Tesla Model Y, which may cannibalize the Tesla lineup in the U.S.
Sales Performance
Tesla’s sales fell by over 23% in Europe during June, despite the region experiencing a growth in EV adoption. Tesla’s current market share is over 2.8% in the region.
Key Takeaways
- Tesla’s inventory and customer orders may be impacted by the repeal of the $7,500 EV tax credit
- The company has limited supply of vehicles in the US this quarter
- Customers are urged to place orders now to guarantee delivery
- Tesla has ambitious targets and plans for the future, including the release of an affordable trim level of the Tesla Model Y
Conclusion
The repeal of the $7,500 EV tax credit may have significant implications for Tesla’s business and customers. As the company navigates these changes, it is essential for customers to stay informed and take action to ensure timely delivery of their orders. With its ambitious targets and plans, Tesla remains a key player in the EV market, and its performance will be closely watched by investors and industry experts.