President Joe Biden is campaigning for United States automakers to commit to a sales goal that would see 40% of its delivered units be electric by 2030. The request from Biden is still in the negotiation phase, according to a UAW representative, who stated no agreement had been reached yet.
The White House has emphasized American car companies begin a serious effort to manufacture and sell electric cars. Aligning with lofty climate goals set for the rest of the decade, Biden is looking at the transportation sector for assistance, calling on domestic car companies to agree to 40% of its total sales be electric. Earlier this week, the White House announced that it would set aside $7.5 billion of its massive $550 billion Bipartisan Infrastructure Deal toward electric vehicle charging stations. The push toward increasing the availability of charging points for EVs would focus on “rural, disadvantaged, and hard-to-reach communities” in particular.
EV charging to receive $7.5 billion in Bipartisan Infrastructure Deal: White House
However, the increase in charging stations would need to be supported by an increased number of electric cars on the road. EVs account for a small percentage of the U.S. automotive market, with around 2 to 3% of the total cars on the road. This number is increasing year over year, but Biden would like to see more effort put forth on increasing the available options from domestic automakers.
Companies like Ford and GM have already released electrified models on the market, and they are performing well in sales terms. A recent report from Car and Driver revealed that the GM-owned Chevy Bolt EV was the third most popular electric car so far this year. The Ford Mustang Mach-E was the fourth best-selling EV. These two vehicles followed the Tesla Model Y and Tesla Model 3, which took first and second place, respectively.
Ford’s commitment to 40% of its sales being electric has already been established, according to company spokesperson Melissa Miller. “Ford has already said that we are leading the electrification revolution and planning on at least 40% of our global vehicle volume being all-electric by 2030,” Miller said in an emailed statement to Reuters. GM said that it did not have a comment to make as an agreement had not been reached.
With government incentives still said to be a circling concern of EV buyers, the White House has reportedly been talking about reintroducing the tax incentive program that establishes more financial advantages for potential buyers. The $7,500 EV tax credit currently expires after an automaker reaches 200,000 sales. Tesla and GM are the only two car companies that have reached this threshold. The credit may be bumped to $12,500: $7,500 for the electric vehicle, an additional $2,500 for vehicles assembled within the United States, and another potential $2,500 for cars built at production facilities whose workers are members of or are represented by a labor union. The incentive could be reintroduced by Biden’s $174 billion EV aid package, $100 billion of which has been slotted out for customer rebates.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Investor's Corner
Two Tesla bulls share differing insights on Elon Musk, the Board, and politics
Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.
Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.
While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.
Ives warns of distraction risk amid crucial growth phase
In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock.
Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.
Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.
Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.
Cathie Wood reiterates trust in Musk and Tesla board
Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.
Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.
TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.
Investor's Corner
Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries
Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.
Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report.
Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.
Tesla’s Q2 results
Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.
In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.
Tesla’s stock is still volatile
Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump.
Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.
A Tesla analyst today said that investors should not lose sight of what is truly important in the grand scheme of being a shareholder, and that any near-term drama between CEO Elon Musk and U.S. President Donald Trump should not outshine the progress made by the company.
Gene Munster of Deepwater Management said that Tesla’s progress in autonomy is a much larger influence and a significantly bigger part of the company’s story than any disagreement between political policies.
Munster appeared on CNBC‘s “Closing Bell” yesterday to reiterate this point:
“One thing that is critical for Tesla investors to remember is that what’s going on with the business, with autonomy, the progress that they’re making, albeit early, is much bigger than any feud that is going to happen week-to-week between the President and Elon. So, I understand the reaction, but ultimately, I think that cooler heads will prevail. If they don’t, autonomy is still coming, one way or the other.”
BREAKING: GENE MUNSTER SAYS — $TSLA AUTONOMY IS “MUCH BIGGER” THAN ANY FEUD 👀
He says robotaxis are coming regardless ! pic.twitter.com/ytpPcwUTFy
— TheSonOfWalkley (@TheSonOfWalkley) July 2, 2025
This is a point that other analysts like Dan Ives of Wedbush and Cathie Wood of ARK Invest also made yesterday.
On two occasions over the past month, Musk and President Trump have gotten involved in a very public disagreement over the “Big Beautiful Bill,” which officially passed through the Senate yesterday and is making its way to the House of Representatives.
Musk is upset with the spending in the bill, while President Trump continues to reiterate that the Tesla CEO is only frustrated with the removal of an “EV mandate,” which does not exist federally, nor is it something Musk has expressed any frustration with.
In fact, Musk has pushed back against keeping federal subsidies for EVs, as long as gas and oil subsidies are also removed.
Nevertheless, Ives and Wood both said yesterday that they believe the political hardship between Musk and President Trump will pass because both realize the world is a better place with them on the same team.
Munster’s perspective is that, even though Musk’s feud with President Trump could apply near-term pressure to the stock, the company’s progress in autonomy is an indication that, in the long term, Tesla is set up to succeed.
Tesla launched its Robotaxi platform in Austin on June 22 and is expanding access to more members of the public. Austin residents are now reporting that they have been invited to join the program.
These Tesla, X, and xAI engineers were just poached by OpenAI
SpaceX share sale expected to back $400 billion valuation
Tesla Giga Texas continues to pile up with Cybercab castings
-
Elon Musk1 week agoTesla investors will be shocked by Jim Cramer’s latest assessment
-
News2 weeks agoTesla Robotaxi’s biggest challenge seems to be this one thing
-
Elon Musk1 day agoElon Musk confirms Grok 4 launch on July 9 with livestream event
-
News2 weeks agoWatch the first true Tesla Robotaxi intervention by safety monitor
-
News5 days agoTesla Model 3 ranks as the safest new car in Europe for 2025, per Euro NCAP tests
-
Elon Musk2 weeks agoA Tesla just delivered itself to a customer autonomously, Elon Musk confirms
-
Elon Musk2 weeks agoxAI welcomes Memphis pollution results, environmental groups push back
-
Elon Musk2 weeks agoElon Musk confirms Tesla Optimus V3 already uses Grok voice AI