Donald Trump is not aware that eliminating EV (Electric Vehicle) mandates will leave existing carmakers in a worse situation.

Donald Trump is not aware that eliminating EV (Electric Vehicle) mandates will leave existing carmakers in a worse situation.

Why is that?

1. Tesla will continue to grow.
   While other automakers scale back EV production, Tesla will take more EV market share as it moves at full speed without changing its plans.
2. Tesla will solve the autonomous driving problem.
   Tesla is making huge strides in fully autonomous driving technology. If Tesla solves this first, other companies will be busy catching up and lagging behind in important innovations. They will even have a hard time staying competitive in the future as they are scaling back on important innovations.
3. Existing automakers cannot make electric cars profitable.
   Traditional automakers are yet to make electric vehicles profitable. Without the mandate, they are more likely to shrink further, allowing Tesla to take on a broader market.
4. The future is electric cars and autonomous driving.
   The world is moving towards electric and self-driving cars with or without mandates. Tesla is already leading the field, and it won’t stop, and it will go even further when the market realizes these are the two most important factors of the future.
5. Tesla generates revenue from electric vehicles.
   Unlike traditional automakers, Tesla is actually making a profit from the EVs it sells. This gives Tesla a huge advantage in taking more risks and making more attractive EV products as the market grows.
6. Existing carmakers will be stuck in unwanted inventory.

When established car manufacturers realize that people want self-driving electric cars, they will be piling up gasoline cars (without self-driving capabilities) that people don’t want anymore. By that point, Tesla will already have what customers actually want in the market.

That’s why EV mandates might seem like a win for traditional automakers, but that’s actually the same reason that opens the door for Tesla to take a more dominant position.