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Tesla<\/a> CEO Elon Musk is firmly in former President Donald Trump\u2019s corner politically, but what a potential Trump Administration could mean for the electric vehicle maker that pays Musk billions is unclear\u2014even to Musk himself.<\/p>\n During a call with financial analysts<\/a> on Tuesday, Wells Fargo<\/a> director Colin Langan asked Musk to explain the impact of a Trump win and the potential wipeout of a federal $7,500 tax credit for electric vehicles<\/a>.<\/p>\n \u201cI guess there would be some impact,\u201d said Musk. \u201cIt would be devastating for our competitors, and it would hurt Tesla slightly.\u201d<\/p>\n The CEO also noted that because Trump has promised heavy tariffs on vehicles produced in Mexico, Tesla would pull back on investing in a factory it had planned to open in Monterrey in 2026<\/a>. \u201cIf that\u2019s going to be the case, we kind of need to see how things play out politically,\u201d he said. Yesterday, Musk denied reports<\/a> that he would pump $45 million per month into Trump\u2019s campaign.<\/p>\n Speaking on CNBC<\/em> before the earnings call, Wedbush Securities tech analyst Dan Ives<\/a> said that a Trump presidency could be negative for the overall EV market because Trump could eliminate the Inflation Reduction Act<\/a> and with it the <\/a>tax credits for EVs and certain plug-in hybrids. That would mean an administration under Kamala Harris, the presumptive Democratic party nominee, could be a positive for the EV industry.<\/p>\n Yet, Trump might be better for the regulatory agenda needed to promote full-self driving and autonomy, which is a key component of Tesla\u2019s growth strategy, said Ives.<\/p>\n \u201cMusk has been background noise under the Biden Administration and in a Trump administration, is that something that will be more front and center?\u201d said Ives. \u201cThat\u2019s why I would say Tesla is part of that Trump trade.\u201d<\/p>\n Musk dismissed the notion that regulators might balk at a fleet of Tesla-made, self-driving robotaxis without steering wheels and pedals. An analyst asked Musk to explain why regulatory risk wasn\u2019t an issue for Tesla, when General Motors<\/a> had paused production of its Origin vehicle that doesn\u2019t have a steering wheel, in favor of its Chevrolet Bolt, in part because of regulation.<\/a> The Cruise Origin autonomous vehicle would need approval from the National Highway Traffic Safety Administration because it doesn\u2019t have traditional manual controls like a steering wheel and pedals, which are required by current safety regulations, and were written for cars with human drivers and not fully autonomous vehicles. <\/p>\n \u201cThe main reason with switching from the Origin to the Bolt is we extinguish the regulatory risk,\u201d GM CEO Mary Barra said, according to a Reuters<\/em> report.<\/p>\n \u201cThe real reason they canceled it is because GM can\u2019t make it work,\u201d said Musk, adding that the automaker\u2019s technology \u201cis not up to par.\u201d He said blaming regulators was \u201cmisleading.\u201d<\/p>\n Jim Cain, an executive director at GM, told Fortune<\/em> Musk is flat wrong.<\/p>\n \u201cAll of those statements are categorically false,\u201d said Cain, who listened to Musk\u2019s comments during the earnings call. \u201cThe Origin vehicle faced a lot of hurdles getting certified because it doesn\u2019t have a steering wheel, it doesn\u2019t have a brake pedal, and it has a unique seating layout that requires a federal motor vehicle safety waiver\u2014full stop.\u201d<\/p>\n Cain said Cruise technology improves every day because of the way it leverages its data set with AI. \u201cAnd so far, they have driven more than 5 million fully autonomous miles and Tesla has driven exactly zero.\u201d<\/p>\n Musk has an unshakeable faith in Tesla\u2019s power to \u201csolve autonomy,\u201d which he reiterated Tuesday, even as Tesla reported financial results <\/a>showing net profits dropped 45%, marking its second quarter of sluggish growth and fourth straight quarter of falling quarterly earnings. Car industry data also showed that Tesla continues to lose popularity in California, where sales fell 24%<\/a> in the second quarter. Meanwhile, Trump has pledged<\/a> to end what he referred to as the \u201cgreen new scam,\u201d promising to abolish \u201cthe electric-vehicle mandate on day one.\u201d <\/p>\n According to Ives, if autonomy is the strategic future of Tesla, it might be more beneficial for Tesla to have less regulation, which is likelier under a Trump presidency versus a Harris presidency.<\/p>\n \u201cThe cherry on top of what could be the sundae\u201d for investors is how the company will impact the robotics market and its efforts on full-self driving and autonomy, said Ives. Ultimately, that\u2019s how the company could potentially reach a $1 trillion or even $2 trillion valuation, he added.<\/p>\n<\/div>\n\nRecommended Newsletter:<\/strong> The Fortune Next to Lead newsletter is a must-read for the next generation of C-suite leaders. Every Monday, the newsletter provides the strategies, resources, and expert insight needed to claim the most coveted positions in business. Subscribe now<\/a>.<\/div>\n