Elon Musk warned of difficult times ahead for Tesla following one of the carmaker’s worst stretches since it first started producing electric sedans over a dozen years ago.Tesla will be in a transition period for the next year or more, losing EV incentives in the US and needing time to roll out autonomous vehicles, the CEO said. “We probably could have a few rough quarters,” Musk said. “But once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I would be surprised if Tesla’s economics are not very compelling.”Tesla shares fell as Musk spoke after the close of US trading. The move carried over into Thursday, with the stock dropping as much as 10% shortly after the open. Musk’s comments were his starkest yet on the fallout for Tesla from the tax bill President Donald Trump signed this month. In addition to phasing out $7,500 tax credits for EV purchases, the law gutted federal fuel-economy standards that have generated significant revenue for Tesla over the years. Meanwhile, Trump said on Thursday he would not destroy Musk’s companies by taking away federal subsidies and that he wants the billionaire tech-entrepreneur’s businesses to thrive. “Everyone is stating that I will destroy Elon’s companies by taking away some, if not all, of the large scale subsidies he receives from the US govt. This is not so!,” Trump said in a social media post. “I want Elon, and all businesses within our country to thrive.” agencies
