Palo alto: Tesla Chief Executive Elon Musk said on Wednesday that U.S. government cuts in support for electric vehicle makers could lead to a “few rough quarters” for the company before a wave of revenue from self-driving software and services begins late next year. Shares fell nearly 5% after Musk responded on a quarterly results conference call to questions about new U.S. government policies under President Donald Trump.
According to Radio Television Brunei, the anticipated reduction in financial support for electric vehicle manufacturers comes as part of broader policy changes. These changes are expected to impact Tesla’s financial performance in the short term, as the company navigates through the transition period. Investors reacted swiftly to Musk’s comments, resulting in a noticeable dip in Tesla’s stock price.
Musk’s statement highlighted the company’s strategy to mitigate the impact of policy changes by focusing on revenue growth from self-driving software and related services, which are projected to gain momentum by the end of next year. Despite the expected challenges, Tesla remains committed to advancing its technological offerings and maintaining its position in the competitive EV market.
The company’s ability to adapt to changing government policies and its plans for future revenue streams will be closely watched by stakeholders and industry analysts in the coming months.