Posted: November 10, 2020
As part of Democratic Candidate Joe Biden’s campaign platform to address climate change, a Biden presidency would aim to lay the infrastructure for 500,000 electric vehicle charging stations nationwide. As president, Biden would make an effort to invest $400 billion taxpayer dollars into automobile infrastructure for the sake of improving battery technology in electric vehicles and transitioning federal vehicles to an all-electric fleet. Biden’s bid for president also aims to provide incentives to consumers to make the switch to electric vehicles. If he succeeds in the polls, Biden would make strides to provide EV tax credits for consumers, as well as further incentives to transition to electric automobiles. As a major manufacturer of electric vehicles, Tesla has become a significant stakeholder in the outcome of the November 3rd election. If the EV tax credit is restored in the next term, in tandem with strict automobile regulations that favor consumer preferences for electric vehicles, Tesla will see greater demand for its vehicles in addition to further increases in the value of its shares. “We predict a clear difference in the marketplace if Vice President Biden takes office,” says Joe Wiesenfelder, executive editor of cars.com. “If President Trump is reelected, EVs could once again falter or even retreat as they did under other Republican administrations.” According to Wall Street analysts, the outcome of the election will have a substantial bearing on the pace with which EVs are adopted broadly into the market. Investor enthusiasm for EV stocks has been largely driven by Tesla’s resounding success in 2020, and will be further bolstered by the election results should the Democrats successfully take office this term. The outcome of the election will invariably impact Tesla’s existing model of corporate governance. If Biden takes office this term, he will take action to promote EV adoption amidst calls to address climate change. One of the tools at his disposal will be to push tax incentives for business and individuals to adopt EVs. Insofar as tax incentive plans have a bearing on shareholder interests, Tesla’s board of directors will be required to identify and assess any emerging conflicts of interests between investors and those in leadership and managerial roles and respond accordingly. Tesla, whose employees are subject to a rigorous performance review process, will also invariably need to reassess its equity rewards and promotion procedures in light of a swiftly-evolving landscape of hyper-growth and increased stakeholder interest. It is difficult to predict the long-term implications of governmental interference in industries. Decision makers and stakeholders at the highest rungs of Tesla’s corporate ladders will be faced with a unique set of challenges as they determine how stimulus packages and tax incentives will impact players at all levels in Tesla’s domain. A Biden presidency would aim to reduce fuel emissions to the extent that by 2026, a quarter of all vehicle sales would come from electric vehicle manufacturers. Tesla is already primed to lead the charge in normalizing electric vehicles in an evolving political landscape. To learn more about maximizing executive salary, visit our Contact Page, or contact us directly by email at email@example.com or by phone at 415-618-6060.