On the day of the US election on November 3, Tesla Inc’s (TSLA) shares rose, but the price is still marginally lower, as Joe Biden’s presidency may not only bring positive changes to the company, but also reinforce the legislative regulation of activities.
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After Joe Biden’s win, the shares of Tesla and other electric car manufacturers, including major traditional players such as General Motors ( GM), as well as solar energy firms, increased by the number of votes in the November 3 US election.
In his campaign, Biden proposed plans to promote the growth of the United States’ electric car and solar energy industries. At the same time, analysts remember that businesses will face more strict labor law standards and other conditions regulating their operations with the arrival of a Democrat in the White House.
Biden’s plans include building an electric vehicle charging infrastructure and installing at least 500,000 charging stations in the United States. Creating 1 million new auto-industry jobs in the country. Replacing the Federal Government automobile fleets with electric vehicles, including vehicles used for postal services and other Federal businesses. Work with the States to introduce tougher emission standards for combustion engine vehicles. Exceed China in the capacity to manufacture electric vehicles (including materials and components). Providing incentives to customers who trade their vehicles for newer and safer cars manufactured in the United States. Expanding research and development related to batteries within the country.
These measures could fuel demand for electric vehicles in the US up and increase competition from conventional combustion engine vehicles even further. In order to build the necessary infrastructure, encouraging more charging stations would also play a crucial role.
It is not yet known to what degree the promised program of Biden will be enforced and what the regulatory effect will be, as decisions will be taken theoretically by “divided” Congress, whose seats are divided 48 to 48 between Democrats and Republicans, according to the latest data.
After Republicans held seats in South Carolina and Iowa, whose votes were vigorously challenged, Democrats’ hopes of winning control of the Senate are dwindling. Senate control can be reduced to the Georgia election, which will be determined on January 5 in the second round. The Democrats maintain control of the House of Representatives.
At the same time, the Biden initiative involves the aim of improving trade unions that do not currently exist at Tesla’s US manufacturing plants. In the future, this could mean a change in the rules for the company, especially because Tesla is already facing charges by the US National Labor Relations Board of breaching labor laws, appealing the California administrative court’s decision.
The autopilot systems of Tesla Inc (TSLA) could be subject to more careful verification. Earlier, reviewing fatal accidents involving Tesla vehicles, the National Highway Traffic Safety Administration (NHTSA) pointed out errors in the design and functions of the autopilot system.