«Tesla’s best hope, as I see it, is to leverage Musk’s connections to Trump to extract subsidies from the government, or harm his competitors. That’s obviously where he’s starting by backing the cancellation of the EV rebate, which will put competitors with less mature supply chains in a weaker position than Tesla in the U.S. But more could be done. Maybe the post office could be forced to buy a million Cybertrucks. Maybe the carbon credit program, which has accounted for a large share of Tesla’s profits in the past, could be dialed up. Maybe the Boring Company can get a contract to dig a tunnel between the White House and Mar-a-Lago to be filled with Teslas driving 35 miles per hour.

The possibilities are endless. Then again, it may be quite hard to get any legislation through this House Republican caucus.

At any rate, Tesla’s preposterous meme stock-esque valuation may stay high for a long time. As we’ve seen with GameStop, markets can stay irrational so long as there is a supply of suckers willing to throw their money down the toilet. But in terms of business fundamentals, Tesla may have already peaked.»

https://prospect.org/infrastructure/transportation/2025-01-03-tesla-is-cooked/