Tesla Motor shares dip after Trump victory
Tesla Motors shares tumbled after the election of Donald Trump amid concerns that his administration will ease the fuel economy and emissions regulations that have benefited the electric car manufacturer. Their value fell by 4% as the market opened, and finished the day down 2.5% at $190.06. Meanwhile, General Motors shares dipped by 2.4% to $30.96 due to worries that Trump will limit access to overseas markets. Trump’s policy advisor, John Mashburn, has indicated that the President-elect’s administration will undertake a “comprehensive review of all federal regulations” including those concerning vehicles.

Tesla Motors Inc. shares tumbled today amid concern the election of Republican Donald Trump as president will lead to an easing of fuel economy and emissions regulations that have benefited the EV maker.

Shares at General Motors and Tesla declined. Tesla shares fell 4 percent at the market open and finished the day down 2.5 percent to $190.06; GM dipped 2.4 percent to $30.96. Ford shares rebounded after spending the morning and early afternoon down; its stock finished the day up 10 cents to $11.58.

The Detroit automakers’ shares had slipped on worries Trump will renegotiate trade deals, limited access to overseas markets, and impose tarriffs on vehicles imported to the U.S., notably from Mexico, which has become a growing hub for car and light truck output.

The slump follows Trump’s unexpected victory and a statement from his policy advisor, John Mashburn, that his administration will reexamine vehicle emissions mandates.

“The Trump administration will complete a comprehensive review of all federal regulations,” the statement read. “This includes a review of the fuel economy and emissions standards to make sure they are not harming consumers or American workers.”

Tesla has benefited from tightening vehicle regulations under President Barack Obama’s administration. In 2012, the EPA issued rules that light vehicles sold in the U.S. average 54.5 miles a gallon by 2025, shifting the industry focus to electric vehicles. A reversal of the mandate could turn automaker and consumer attention back to internal combustion engines.

Tesla is also preparing for the $2.3 billion acquisition of alternative energy company SolarCity, which shareholders are scheduled to vote to approve on Nov. 17. The planned merger has received mixed opinions from shareholder advisory firms Institutional Shareholder Services and Glass Lewis.

Tesla CEO Elon Musk publicly opposed Trump’s candidacy leading up to Tuesday’s election. In an interview with CNBC on Friday, Musk said that Trump “is probably not the right guy,” for the presidency, and that Clinton’s proposed environmental and economic policies “are the right ones.”

Tesla did not immediately respond to request for comment.