Investing.com -- President Donald Trump's return to the White House could have mixed implications for Tesla (NASDAQ:TSLA), the broader electric vehicle (EV) market, and Trump Media & Technology Group, according to Jefferies-owned multi-asset trading platform Tradu.
In a recent note, Nikos Tzabouras, Senior Financial Editorial Writer at Tradu, outlines the advantages and challenges a second Trump term may bring, particularly for Tesla's CEO Elon Musk and his ambitions.
The EV sector, he notes, could see setbacks if Trump follows through on pledges to dismantle current green energy policies, which have supported EV adoption.
"The EV market and the renewables sector could be one of the main losers of a new Trump presidency," he explains, "as he has pledged to dismantle the green energy policies enacted by the current administration."
Tesla, however, may prove resilient. "Tesla's leadership allows it to withstand such a shift, which could hurt its competitors more," he adds, noting that Tesla's unique pivot toward AI and robotics could position the company to benefit from Trump's potential deregulation efforts.
In terms of international dynamics, Tradu believes Tesla could face challenges in China under Trump 2.0. U.S.-China trade tensions may intensify, further complicating Tesla's operations in one of its most lucrative markets.
"Relations could deteriorate under President Trump, and that could be negative for Tesla's Chinese business," Tradu states. However, Trump's reputation as a "deal maker who can think outside the box" could potentially benefit Tesla in navigating these hurdles.
They add that Trump Media, meanwhile, should benefit from another Trump presidency.
"Long-term, we could see his presidency having a positive impact on the firm, especially if his social media platform becomes a de facto press office for the US president," says Tzabouras.
The firm's recent stock surge amid election news underscores investor confidence in Trump's influence on the platform.