Tesla stock is so high is because many investors like Dan Ives and Cathie Wood really believe in Elon Musk, that is why Dan Ives is the #1 Tesla Bull. But, Trump’s Big Beautiful Bill killed the subsidy for Electric Vehicles and it made the carbon tax zero for vehicle emissions.
The winners of Trump’s Big Beautiful Bill are legacy car manufacturers like GM which can use the money it saves to subsidize the sale of the Electric Chevy Equinox SUV which is by far the best EV deal on the market. Ford has also said that it will still continue it’s plan to make EV batteries in it’s new Michigan EV battery plant.
The loser of Trump’s Big Beautiful Bill is Tesla and the first quarter that this will be clear is January of 2026, because the $7,500 tax credit expires on September 30th, so until then EV sales (including Tesla) will be fantastic because dealers will offer big discounts to get all those EV cars off their parking lots before it is too late, so the sales numbers for Tesla in August and September will be very good and the Tesla stock price will probably soar and easily cross 400 by October.
It won’t be until January on 2026 that the effect of Trump’s Big Beautiful Bill will show up in Tesla earnings. For GM and Ford the profit from gasoline truck sales will easily make up for any loss on the EV cars like Mustang or Equinox, so in January of 2026 I think the stock price of GM and Ford will increase.
Many individual investors will continue to have faith in Tesla, but what will the institutional investors do with their Tesla stock in January 2026 ?