Part 4/9:
Adding complexity to the discussion is the recent fallout between Elon Musk and former President Donald Trump. Musk's regrets over certain comments led to debates about their impact on Tesla's public image and business prospects. Chanos downplayed this drama, suggesting that such personal conflicts would not materially affect Tesla’s operations or technology.
However, he did express concerns about forthcoming legislation affecting EV and solar energy markets. If implemented, such regulations could potentially strip away valuable subsidies and credits, significantly impacting Tesla’s profitability and its competitive advantage against other automakers, particularly those struggling in the EV space.