1 Thing Every Tesla Investor Needs to Watch Right Now

Group 1 - Tesla's stock is facing challenges with analysts predicting a nearly 30% drop in earnings for the next quarter compared to the same period last year, while its price-to-sales ratio remains high at 12.6 [1] - Rivian Automotive, another player in the electric vehicle market, has a significantly lower price-to-sales ratio of 2.9, indicating a stark contrast in valuation between the two companies [1] - Tesla's current sales heavily rely on two models, the Model 3 and Model Y, which have starting prices below $50,000, aligning with consumer preferences in the U.S. [3] Group 2 - Federal tax credits of up to $7,500 have historically made Tesla vehicles more affordable, boosting demand for the Model 3, Model Y, and even the Cybertruck [4] - A proposed bill by President Donald Trump aims to eliminate federal EV tax incentives, which could significantly impact Tesla's sales, as over half of EV buyers consider these credits crucial for their purchase decisions [6] - The experience in Germany, where the abrupt end of EV incentives led to a 16% drop in EV sales over six months, serves as a warning for potential outcomes in the U.S. market if tax credits are removed [6]