Tesla faces potential sales fluctuations due to changes in EV tax credits, according to analyst Troy Teslike. While Q3 sales might see a temporary boost as buyers rush to purchase vehicles to benefit from the credits, Q4 sales may suffer. Analysts anticipate a poor Q2 sales report, predicting a decline in full-year deliveries for the second consecutive year. JD Power found that approximately two-thirds of luxury EV purchasers consider tax credits pivotal in their buying decisions. To counteract reduced incentives, Tesla may need to lower prices, risking profit margins or accept lower demand. JPMorgan warns that impending legislation could jeopardize up to half of Tesla’s profits, particularly the elimination of EV tax credits and regulatory credits sold to other automakers. CEO Elon Musk expressed his disapproval of the bill, stating it could “destroy millions of jobs” and would have harmful strategic implications for the U.S. economy.
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