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Unless the government buys from Tesla, Trump's help won't matter much to investors. In the case of a bailout, investor equity is the first thing destroyed. Tr
by ww520 10y ago
Unless the government buys from Tesla, Trump's help won't matter much to investors. In the case of a bailout, investor equity is the first thing destroyed. Trump would certainly help Tesla to survive in such an event, but for investors, its' better to buy after that than before.
- hackuser 10y agoGood points; I wonder what the investment banks saw. Certainly Tesla depends on government laws, regulations and policy, especially as a new entrant seeking widespread changes in several regulated industries. For example, they want electric charging stations spread nationwide, they'd probably like fossil fuels to become more expensive or at least become less subsidized, subsidies for electric cars, regulators to not delay or limit Tesla innovations, etc. etc. Also, government does R&D on battery tech, I'm pretty sure. Does anyone know how much Tesla directly or indirectly benefits? Finally, they may want to sell to government; fleets of large organizations often are good customers for alternative fuels, because (AFAIK) they can provide and support their own infrastructure. But that is speculative (as is investing!).