Trump Win Could Hinder Tech, EV Sector Growth, 'Slow The Pace' Of AI Revolution: Analysts Lay Out 2024 Election Implications

Zinger Key Points
  • Wedbush analysts break down what wins by Donald Trump and Kamala Harris could mean for the technology sector.
  • The electric vehicle sector could be impacted by the election outcome.

A win for Donald Trump or Kamala Harris could have implications for many sectors, including technology and electric vehicles, making the outcome of the 2024 presidential election important for investors.

A group of Wedbush analysts outlines the implications for the technology sector in light of Tuesday's election.

2024 Election Being Closely Watched: Wedbush analysts Daniel Ives, John Katsingris, Steven Wahrhaftig, and Sam Brandeis share their thoughts on the technology sector ahead of the 2024 election and what a win by either Trump or Harris could mean.

"U.S. Elections here with implications for tech on the table," the analysts said.

Technology investors are worried about the global implications of a Trump win with the potential for increased tariffs that could create tensions between the U.S. and China in the technology sector, the analyst said.

"Tonight the Street and tech world will be watching election results with white knuckles as there are many policy dynamics in the Beltway that will impact the tech sector looking ahead."

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What a Trump Win Means: The analysts said a Trump win could create major changes in tariffs and could impact the overall technology supply chain.

NVIDIA Corporation NVDA, Apple Inc AAPL and Tesla Inc TSLA are highlighted in the report as companies that could be negatively impacted by the possibility of retaliatory impacts from China.

The analysts said a Trump win could "slow the pace of the AI revolution."

Federal Trade Commission (FTC) Chair Lina Khan is another critical figure to monitor, as she has exerted pressure on major tech companies and may advocate for breakups. The analysts said Khan is likely out with a Harris win, but could remain in the position if Trump wins.

The analysts added that Congressional races on Election Day could impact the chance of major policy changes for Big Tech regardless of who wins the White House. A GOP sweep of the White House and Congress could be bullish for the overall stock market but negative for Big Tech stocks.

"From a Big Tech/AI trade perspective we view overall a Harris White House win as more bullish on the margins and a Trump win as a net negative for Big Tech."

Given Elon Musk’s support for the former present, one of the big questions is whether a Trump win could be good for Tesla.

"We believe a Trump presidency would be an overall negative for the EV industry as likely the EV rebates/tax incentives get pulled, however for Tesla we see this as a potential positive with some caveats."

The analysts said Tesla's size and scale could help the company without tax incentives, and it could have a "clear competitive advantage" with competitors losing subsidies and the potential of higher tariffs on Chinese companies.

"Higher China tariffs that would continue to push away cheaper EV players (BYD, Nio, etc.) from flooding the US market over the coming years."

What a Harris Win Means: A win in the 2024 election by Harris could be a positive for the electric vehicle sector, the analysts said.

"If Harris wins we would expect the EV tax credits to remain the same and ultimately increase in 2025 as the goal to get more US consumers towards EVs would be a laser focus in a Harris Administration," the analysts said.

General Motors GM, Ford Motor Company F and Stellantis NV STLA are named as companies that could benefit from a Harris win as they are betting heavily on electric vehicles and need the growth to continue.

The analysts said a Harris win could be neutral or slightly negative for Tesla.

Musk heavily supporting Trump in the election could have "negative consequences" in the future, the analysts said.

"For now, the ‘Musk betting on Trump bet' has seen a limited negative impact on demand in the U.S. although clearly this political dynamic could impact some customers to go away from Tesla when buying decisions ultimately come around over the next year."

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Posted In: Analyst ColorPoliticsAnalyst RatingsTechTrading Ideas2024 electionChinaDaniel IvesDonald Trumpelectric vehiclesElon MuskFTCJohn KatsingrisKamala HarrisLina KhanmobilitySam BrandeisSteven WahrhaftigStories That Matter
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