<div id="readability-page-1"><div><div>Piper Sandler analyst Alex Potter says President Donald Trump's new regulations over ZEV credits aren't &#34;as bad as you think&#34; for Elon Musk and Tesla Inc. TSLA.Check out the current price of TSLA stock hereWhat Happened: In a new investor note released on Monday, Potter said the EV giant &#34;received ~$3.5B in ‘free money’ last year, representing roughly 100% of FY24 free cash flow,&#34; before adding that Trump's new ZEV regulation has people worried about possible threats to the Tesla revenue stream.&#34;In short, we think the answer is no, at least not in 2025,&#34; the analyst said. However, Potter did concede that the Trump administration's recent commitment to rescind EV incentives could have an impact in the future.&#34;Tesla will still book around $3B in credits this year, followed by $2.3B in 2026,&#34; the analyst said before reiterating a $400 Price Target for Tesla, an upside of over 20%.The note also hailed Robotaxi operations in Austin as well as the company's efforts to expand into other territories as a positive sign. &#34;In our view, these favorable FSD-related developments are likely to overshadow any/all negative commentary arising from lower 2025/2026 estimates,&#34; the note said.Why It Matters: The news comes as Trump's new regulations and the relaxation of CAFE or Corporate Average Fuel Economy norms could cast doubt over the company's ZEV revenue.Tesla isn't the only company that risks losing the lucrative ZEV credit revenue, as Rivian Technologies Inc. RIVN could lose a $325 million stream of cash influx into the company following Trump's new regulations.The company also plans to expand the serviceable areas of its Robotaxi, with documents showing the EV giant's plans to enter Phoenix, as well as Musk stating that the Robotaxi could be available in the San Francisco Bay Area pending regulatory approval.The administration has taken other steps to curb EV incentives, like axing the $7,500 EV credit, which will end on September 30, 2025. Elsewhere, the president has also indicated that he could hike auto tariffs again in a bid to boost domestic production.Tesla offers Satisfactory Momentum and Quality, while scoring well on the Growth metric, but offering poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!Check out more of Benzinga's Future Of Mobility coverage by following this link.<ul> <li>Elon Musk’s Tesla Announces 3 Million Model 3 Units Sold Worldwide</li> </ul>Photo courtesy: Shutterstock</div></div></div>

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Piper Sandler analyst Alex Potter believes Trump's new ZEV credit regulations are not as detrimental to Tesla as feared. He estimates Tesla will still earn around $3 billion in credits this year, despite concerns over future revenue streams. Potter maintains a $400 price target for Tesla, highlighting positive developments in Robotaxi operations and expansion plans. The new regulations may impact other companies like Rivian, which could lose significant revenue. Overall, Tesla's growth potential remains strong despite regulatory challenges.

- Analyst Alex Potter from Piper Sandler suggests that President Trump's new ZEV regulations may not significantly harm Tesla's revenue in 2025.  
- He notes that Tesla received approximately $3.5 billion in credits last year and expects around $3 billion this year, despite potential future impacts from the regulations.  
- The report highlights positive developments in Tesla's Robotaxi operations and expansion plans, which may mitigate concerns over lower revenue estimates.

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Trump's New ZEV Credit Regulations Aren't 'As Bad' For Elon Musk, Says Piper Sandler: 'Tesla Will Still Book Around $3 Billion…'