TRUMP ADMINISTRATION REVOKES ENERGY DEPARTMENT REGULATIONS THAT PROMOTED ELECTRIC VEHICLE MANUFACTURING TO COMPLY WITH FUEL ECONOMY STANDARDS
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy TSLA?
Source: moomoo
Trump Administration's Action: The Trump administration has rescinded rules from the Energy Department that incentivized the production of electric vehicles to comply with fuel economy standards.
Impact on Electric Vehicle Production: This decision may affect the production and adoption of electric vehicles, potentially hindering progress towards meeting fuel economy requirements.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 411.320
Low
25.28
Averages
401.93
High
600.00
Current: 411.320
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Poor Stock Performance: Year to date, Tesla's (TSLA) shares are down over 8%, despite CEO Elon Musk's confirmation on social media that the company expects to launch steering-wheel-free electric Cybercabs for under $30,000 before 2027, highlighting a disconnect between market expectations and current stock performance.
- Declining Financial Metrics: In 2025, Tesla's total revenue fell by 3% year-over-year, with automotive revenue down 10% and earnings per share plummeting by 47%, indicating significant challenges in profitability that could undermine investor confidence.
- Insufficient Capital Expenditures: Tesla's capital expenditures in 2025 were $8.5 billion, which is trivial compared to its market capitalization of over $1.5 trillion and a decrease from $11.3 billion in 2024, raising concerns about the company's future growth potential.
- Future Spending Plans: Although Tesla anticipates capital expenditures exceeding $20 billion in 2026, the allocation across multiple projects raises investor skepticism about the company's ability to effectively utilize these funds for growth.
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- Mileage Milestone: Tesla's Full Self-Driving (FSD) system has driven over 8.2 billion miles, with more than 3 billion miles in urban conditions, showcasing its capability in complex environments and enhancing consumer confidence in its safety.
- Significant Accident Reduction: The latest data indicates that Tesla's FSD system has resulted in 7X fewer major and minor collisions and 5X fewer off-highway collisions compared to traditional driving, which not only boosts brand image but may also drive future sales growth.
- Positive Market Reaction: Tesla's stock surged 0.17% to $411.32 at market close on Wednesday and further increased by 0.10% in after-hours trading, reflecting investor confidence in its safety data and upcoming products, potentially attracting more investor interest.
- New Product Launch: Tesla announced the production-ready version of its Cybercab, set to begin production in April at a price of $30,000, which is expected to further expand its market share and enhance overall revenue.
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- Market Performance Divergence: As of 2026, 493 stocks in the S&P 500 have outperformed the Roundhill Magnificent Seven ETF (NASDAQ:MAGS), indicating a potential weakening of concentrated investments in tech giants, which may impact investor confidence.
- New ETF Launch: XMAG, launched on October 21, 2024, tracks the BITA US 500 ex Magnificent 7 Index, currently holding 493 stocks with net assets of $137.79 million, reflecting a rising demand for diversified investments in the market.
- Valuation Rotation Thesis: Investor Ed Yardeni's
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- Poor Stock Performance: Microsoft has seen a 17% decline in stock price year-to-date in 2026, making it the worst performer among the 'Magnificent Seven', indicating significant relative weakness, particularly as it has lagged the SPDR S&P 500 ETF by over 30% since August 2025.
- Historic Low Streak: The company has underperformed the S&P 500 for seven consecutive months, a first in its 40-year public market history, reflecting market concerns about its future growth potential, especially following the AI boom.
- Surging Capital Expenditures: Last quarter, Microsoft's capital expenditures surged 65.9% year-over-year to $37.5 billion, with about two-thirds allocated to short-lived assets, raising investor concerns about spending efficiency, despite Azure revenue growing 39% year-over-year.
- Increasing Competitive Pressure: With competitors like Google embedding AI into their office software, Microsoft faces intensifying market competition, particularly as the rollout of its Copilot has not met expectations, suggesting potential threats to its market share in a rapidly evolving landscape.
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- Retail Investor Interest: Tesla stock continues to attract retail investors despite experiencing recent declines in its value.
- Market Sentiment: The ongoing popularity among retail investors suggests a strong belief in Tesla's long-term potential, even amid short-term fluctuations.
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- Increased Launch Cadence: Musk predicts that SpaceX's Starship will achieve an hourly launch frequency within three years, significantly enhancing the company's launch capacity and competitive edge in the market.
- Market Dominance: According to user Brian Basson's social media post, SpaceX plans to conduct seven Falcon 9 launches from California and Florida in 2026, showcasing its absolute dominance in the launch market.
- Industry Impact: Musk's prediction not only reflects confidence in Starship technology but may also attract more clients to choose SpaceX as their preferred launch service, further solidifying its market share.
- Future Outlook: With the increase in launch frequency, SpaceX is poised for higher revenue growth in the coming years and aims to establish a stronger brand influence in the space transportation industry.
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