Analyst Says End of EV Tax Credits Positive for Tesla (TSLA) Amid ‘Catch-22’ Of Competitors

Core Viewpoint - The end of EV tax credits may benefit Tesla Inc (NASDAQ:TSLA) as competitors are under-investing in electric vehicles, potentially giving Tesla an advantage in the Full Self-Driving (FSD) race [1][2]. Group 1: Competitors' Challenges - Major traditional automakers such as GM, Ford, Volkswagen, and Toyota have indicated plans to cut EV factory output and the number of models by 20% to 30% in recent months due to the removal of tax credits [2]. - This under-investment in EVs places traditional automakers in a difficult position, as they will struggle to monetize autonomy without a sufficient electric fleet [2]. - Tesla has been producing EVs profitably, while its competitors are facing losses [3]. Group 2: Tesla's Developments - Tesla is progressing with its robotaxi business in Austin, which marks a significant milestone after years of development and investment [4]. - The company has introduced a refreshed Model Y globally, featuring design and performance upgrades, and plans to unveil new mass-market models in the upcoming quarter [4]. - Tesla is also advancing towards scaling production of its humanoid robot, contributing to its long-term growth narrative [4].