Tuesday, 6 December 2016

How Does Tesla Plan For The New World Order Under Trump?


The creation of a new administration packed with climate change deniers should have Elon Musk quaking in his boots. Especially when that administration will be led by a man who has been a vocal opponent of climate change veracity in the past.

After all, Tesla's business centres around products designed to minimize the human impact on our environment. That puts its US expansion at some risk.

On the plus side Trump has moderated his language on the subject in the last few weeks. A good sign, as is yesterday's meeting with Al Gore, the leading advocate for action on climate change. Apparently brokered by Trump's daughter lvanka the meeting apparently didn't end as acrimoniously as perhaps have been expected

In amongst all this good news, however, Tesla must be harboring some concerns about future business impact.

In order to secure itself a favourable position with the new administration Tesla needs to massively focus on exports. It may hurt a little, reducing the number of cars it sells at home, but in the long run being a net exporter of product and net importer of revenue makes for some pretty powerful arguments for the White House keeping its hands off the company.

After all, no President can afford to fall out with a company that is both prepared to manufacture in the US but also manages to make a positive contribution to the balance of trade.

H things go badly it may prove to be the only defense mechanism the company has.

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