Every Tesla Investor Should Keep an Eye on These 2 Numbers

Core Insights - Tesla's stock has been volatile and controversial, with a market cap around $1 trillion, driven by expectations of increased electric vehicle sales and a potential robotaxi business [1] - Sales growth is struggling in key markets, and CEO Elon Musk has been in the news for negative reasons [1] Tax Credit Implications - A new bill backed by President Trump proposes eliminating federal tax credits for electric vehicles, which currently range from $4,000 to $7,500 [2] - Over 90% of Tesla's sales come from the Model 3 and Model Y, both of which qualify for these tax credits, making them more affordable [2] - Surveys indicate that more than one-third of Tesla buyers would not have purchased their vehicle without the tax credit [2] Revenue Sources and Profitability - The potential elimination of tax credits could significantly dampen Tesla's sales growth in the future [3] - Last quarter, Tesla reported a net profit of $409 million, partially supported by $595 million in automotive regulatory credits, which are sold to competitors needing to meet emission standards [5] - If federal and state programs for these credits are cut, Tesla could lose a critical revenue source with nearly 100% profit margins [5] Sales and Market Position - With electric vehicle deliveries already declining, the loss of federal EV tax credits or automotive regulatory credits could further jeopardize Tesla's market position [6]