Demand for EVs in the U.S. could rise due to higher gas prices and newer lower-cost models coming soon. Democratic Reps. Mike Levin and Sean Casten have proposed legislation to restore the $7,500 federal EV tax credit for new vehicles, which expired last year, and it has the backing of at least 160 House Democrats. The proposed Cheap Energy Act would also modernize the electricity grid so consumers do not have to pay for data center upgrades. Some Democrats are wary, while one proposal would cap income levels so the credits target working and middle-class families. Passing the bill requires President Donald Trump's signature or a two-thirds override in both chambers, and the article notes that 1.3 million new EVs were sold in 2024, the last full year the credit was available. Tesla, which already makes profitable vehicles with some of the lowest starting prices, could benefit less from the credit than its competitors.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
TSLAelectric vehiclestaxesElon Musk
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.5T |
| Close on 10/28/2026 | 404.41 |
| Change that session | -0.75% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- America's EV Plans Have Died
Billions of dollars went into EV factories, dealerships and marketing after President Biden set a goal for 50% of new US car sales to be zero-emission by 2030, but EV sales have since fallen sharply. US EV sales dropped 30.7% in the first nine months of 2026, after the $7,500 tax credit expired on September 30 last year, and gas prices near $4.50 per gallon have done little to lift them. According to Kelley Blue Book, the average transaction price of a new EV was $54,754 in August, above the $50,089 average for all new cars. Ford's EV sales fell 80.2% to 6,047 in the third quarter, and it has no new EV planned until its Fathom launches next year, while Tesla holds over 50% of the market and no other major automaker has even 10%. The article says EVs could recover if gas prices reach $5 and stay there for months, but that is uncertain.
- Fort Bend County sweetens pot to land $10B Tesla solar plant
Fort Bend County is offering a three-decade incentive package to lure Tesla's $10 billion solar panel factory, which Tesla has not formally located, with the race narrowed to two sites, one in Texas and one in another state. Under the package, Tesla would pay county property taxes on structures and buildings while machinery taxes are waived, and inventory taxes are waived for ten years before dropping to a 90% abatement. The deal would be extended five years if the plant employs more workers than currently planned. Lamar Consolidated Independent School District has also offered benefits, as Musk's companies continue expanding across Texas.
- Musk's Massive Marketing Miss Cost $10 Trillion
The article argues Tesla has missed a major marketing opportunity by not offering families with children a free 30-minute FSD ride, even though the author sees FSD as central to Tesla's value. Citing Tesla's own figures (not an independent audit), FSD-equipped cars go about 6.0 million miles between major collisions versus the U.S. average of one every 660,000 miles, and Tesla reports 1.74 million active FSD subscriptions worldwide. Tesla earlier launched 'Tesla Ride', but it is limited to some U.S. areas, requires living near a Tesla store, and requires the driver to be 21 or older. The author concludes that demand for FSD experiences already exists, yet Tesla has not promoted the offer widely.
- How Tesla Blundered
The analysis argues Tesla missed an EV 'iPhone moment': it had 79% of US electric car sales in 2020, but deliveries slid from 1.81 million in 2023 to 1.79 million in 2024 and 1.64 million in 2025. A roughly $25,000 model was shelved in April 2024, and the cheaper versions launched in October 2025 cost $37,000 to $40,000, with 98% of last quarter's 486,532 deliveries still Model 3 or Model Y. Tesla's 1.74 million active FSD subscriptions in Q3 2026 equal fewer than 1 in 170 of America's roughly 298 million registered vehicles. The article also cites BYD's 2.26 million EV sales last year, the end of the $7,500 US tax credit in September 2025, and a buyer backlash over Musk's politics. Tesla still sells 54% of America's electric cars, the article notes.
- Tesla's Free Cash Flow Beat: Good News, Bad News, and What It Means for the Future
Tesla lowered its 2026 capital spending forecast to about $20 billion and arranged $30 billion in credit. In the third quarter, the company generated $1.5 billion in free cash flow on $4.7 billion of capital expenditure, compared with the $3.8 billion cash outflow Wall Street had expected, and now holds almost $36 billion in net cash. The author suggests the delayed spending may be linked mainly to Optimus, as Elon Musk said early production in Fremont would probably take at least a year, maybe longer, to reach 20,000 units a week. According to the article, the disciplined spending, the credit line and positive cash flow show Tesla can fund its expansion, including the Robotaxi and Cybercab ramp next year, even if Optimus timelines have slipped.
- Tesla Gains Another 4% as ARK Restates $4,400 Robotaxi Target and Musk Teases “A Storm of Cybercabs”
Tesla shares rose 4%, adding to a Monday rally after Barclays upgraded the stock to Overweight and raised its target to $450 from $370, a view that rests on an anticipated SpaceX merger with no terms set yet. ARK Invest reaffirmed its $4,400 base-case 2031 target, tying about 80% of Tesla's 2031 enterprise value to robotaxis and assuming 8.1 million robotaxis generating $753 billion of net ride-hail revenue that year. The consensus target is $411, up from $386 a year ago, with the highest at $600, while Tesla trades at 183x forward earnings versus a five-year average of 108x. Consensus expects normalized EPS to rise from $1.66 in 2025 to $3.20 in 2028, below the $4.07 earned in 2022, and free cash flow to remain negative through 2028. Tesla said its Texas Cybercab factory can build robotaxis faster than they can be deployed, citing six robotaxi cities on its third-quarter call, with a Dallas Cybercab launch set for November and robotaxi revenue expected to become noticeable by Q2 2027.
Related markets
Latest news
- Minutes of the Meeting of the Court of Directors held on 17 September 2026
Minutes of the Court of Directors meeting on 17 September 2026 approved the minutes of 16 July 2026 and recorded the Governor's update on Jackson Hole, the G20 meeting in North Carolina and the MPC's annual Quantitative Tightening decision. The COO update said office attendance of 50% of the time takes effect on 1 October following the Flexibility Review, and the VISTA data analysis system has gone live as a first step away from the legacy FAME platform. The Location Strategy Programme reported progress toward 500 staff in Leeds by the end of 2027, while Unite the Union said some staff were concerned about unclear job profiles after the Mutually Agreed Resignation scheme. Other items covered 2026 staff survey results and the recruitment of a Deputy Governor for Markets and Banking as Dave Ramsden's term ends next year.
- Christine Lagarde, Boris Vujčić: Monetary policy statement
The ECB Governing Council decided to keep its three key interest rates unchanged. Energy prices kept rising, raising upside risks to inflation and downside risks to growth, and financing conditions have tightened since the last meeting. Inflation rose to 3.8% in September from 3.2% in August, with energy inflation at 18.9% (from 14.3%) and inflation excluding energy at 2.3% (from 2.1%). The unemployment rate was 6.4% in August, and the wage tracker projects negotiated wage growth of 2.5% to 2.8% for the rest of 2026 and an average of 2.6% in the first three quarters of 2027. The ECB said it will set policy based on data at each meeting and is not pre-committing to a rate path.
- Nvidia CEO Huang caught up in reported Chinese spy probe as AI stocks slide
As AI stocks slid on concerns about infrastructure costs and uncertain returns, the New York Times reported that U.S. intelligence agencies concluded Alice Huang, an executive at Singapore-based data center company Megaspeed suspected of helping China obtain restricted Nvidia chips, was also gathering intelligence for Beijing. Surveillance reportedly showed she had a close relationship with Nvidia CEO Jensen Huang, raising concerns about access to sensitive information. President Donald Trump was briefed on the findings roughly a year ago but chose not to act, according to the Times, citing concerns about disrupting Nvidia's chip sales and China trade relations. Megaspeed's Malaysian affiliate purchased at least $4.8 billion in AI equipment containing Nvidia chips between June 2024 and February 2026, according to trade records cited by the Times. Nvidia said its dealings with Alice Huang were ordinary business and that customers such as Megaspeed receive no sensitive trade secrets or national-security-relevant information.
- Alphabet tumbles, software and cybersecurity stocks sink as earnings disappoint: AlphaCheck
Stocks fell Thursday as cybersecurity and software shares dropped after disappointing forecasts. Alphabet (GOOG, GOOGL) posted a rare miss on both top and bottom lines, dragging down Big Tech. Microsoft (MSFT) erased its after-hours gain despite strong results reported Wednesday. The tech sector (XLK) declined, pulling Nvidia (NVDA), AMD (AMD) and Broadcom (AVGO) lower, while Brent crude fell more than 2% to below $110 per barrel and WTI traded near $100.
- JPMorgan starts Palantir at Overweight, calls it a disruptive AI leader
JPMorgan initiated coverage of Palantir Technologies with an Overweight rating and a December 2027 price target of $262 per share, adding the stock to its Analyst Focus List. Analyst Brian Essex wrote that enterprises are moving from deploying AI to seeking returns on it, and that Palantir is already delivering ROI, with revenue growth accelerating for the 12th straight quarter to 93% year over year. Non-GAAP operating margin reached 62% and free cash flow grew 126% last quarter. JPMorgan said the $262 target equals 55 times its 2028 EV/free cash flow estimate on $11.7 billion of free cash flow, and forecasts three-year free cash flow growth of 77% through 2028. The bank also placed Palantir on Positive Catalyst Watch ahead of its Nov. 2 earnings report.
- Should You Buy Royalty Pharma Stock Before Nov. 4?
Royalty Pharma (RPRX) will report Q3 2026 earnings pre-market on Nov. 4. Shares fell in September after a major setback with one of its drug candidates and have since rebounded toward their 52-week high. Analysts forecast 8.7% sales growth and essentially zero earnings growth for the quarter ended Sept. 30, though forecasts have been revised upward since August, when royalty receipts grew 14%. The article says the company's results are seen as “lumpy” due to one-time milestone payments, and updates on JNJ-4804 and daraxonrasib, or underwhelming results with Novartis's pelacarsen, could influence the market reaction. The stock trades at around 12 times forward adjusted earnings, and the article suggests its valuation could move toward a multiple in line with larger, more established biotech stocks if earnings growth becomes steadier.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.