Tesla ,TSLA -0.67%, Stock is in a difficult place. Analysts hope that earnings will fall by about 30% in the next quarter compared to the same quarter last year. Still on one Price-to-sell Aadhaar, the assessment of stock remains at 12.6.

On the other hand, Rivian motor vehicleAnother Electrical car stockTrades only 2.9 times on sale.

Tesla Stock is the price of price for a big increase despite proceeding. But below is a risk factor that can make a even greater breach in the development trajectory of Tesla for the coming years. Every investor needs to monitor this one thing carefully.

This can punish a risk factor Tesla Stock

Right now, the sale of more than 90% of Tesla vehicles is stem from just two models: Model 3 and Model Y. The base value of both is less than $ 50,000. Given most Americans that want to spend less than $ 50,000 on their next vehicle purchase, according to 2024 studies, by Autopacific, Tesla is in a solid place to attract millions of budget buyers in the US.

To make Teslas even more economical, buyers are able to qualify for long -term federal tax credits that can be up to $ 7,500 in total. Model 3 and model Y both qualify for these tax credit. Even some pricer models of Tesla, such as entry-level Cybertrook, qualifying. The result is a low effective purchase price for consumers, and thus more demand for Tesla’s products.

There is just one problem: federal tax credit can occur in the way.

The new bill of President Donald Trump made federal EV and called for immediate abolition of encouragement. If this was the case, what would happen to Tesla’s sale? More than half of all EV buyers say that tax credit was a decisive factor in their purchase. When the EV incentive ended in Germany in Germany in 2023, EV sales fell over 16% in the next six months.

If the tax credit in the US is abolished, it is expected that Tesla is expected to sell and earning.