Shares of Tesla surged as investors bet that Donald Trump’s return to the White House would help the electric vehicle manufacturer and its CEO, Elon Musk. With the possibility of reduced subsidies for alternative energy and electric vehicles hurting smaller rivals the most, Tesla stands to gain a lot under a Trump administration. It is unlikely that Chinese EVs will be marketed in large quantities in the United States anytime soon given Trump’s proposals for high taxes on Chinese imports. Tesla’s stock surged 14.8% while those of other electric car manufacturers fell. Shanghai-based Nio dropped 5.3%, electric truck manufacturer Rivian’s stock fell by 8.3%, while Lucid Group’s stock dipped 5.3%. Musk, one of Trump’s largest donors, spent at least $119 million mobilising Trump followers to support the Republican candidate.
Shortfall in funding for green tech companies due to high borrowing costs
COP28 saw countries pledging to triple their renewable energy capacities. This showed promise of robust investment in green technologies to achieve that, but that hasn’t worked too well. The main culprit is higher borrowing costs, which is making it difficult for green tech companies to scale up, found a report by the Financial Times. The report cited research company Sightline Climate which found that funds raised by climate tech start-ups in the first half of 2024 decreased by a fifth from last year. Also, investor funds are being diverted to developing AI technologies, which means a lower fund pool for green tech.
Big Tech is fuelling the climate crisis by spreading disinformation
A report by the Climate Action Against Disinformation coalition (CAAD) found that Big Tech was spreading misinformation about the climate crisis through its mass media instruments by allowing Big Oil and other climate denying lobbies to spread misinformation about renewables, wildfires, electric vehicles and hurricanes to undermine climate action. The report found that eight fossil fuel advertisers paid Meta around $17.6 million for over 700 million impressions in the last one year.
India Inc has big plans for semiconductor manufacturing
Semiconductors are a highly lucrative product, as it is needed for every technological utility from electric vehicles to phones and laptops. The Tata Group wants to cash in on that. It has plans to invest ₹ 91,000 crore for a plant in Gujarat and ₹ 27,000 crore for a plant in Assam. It has also made Singapore, which accounts for 20% of global semiconductor equipment production, as a key partner. State governments, too, are excited about production prospects. The Uttar Pradesh government has approved semiconductor projects amounting upwards of ₹ 32,000 crore, including a bid by the Hiranandani Group. Gujarat, however, is emerging as a clear leader as a semiconductor manufacturing hub with its dedicated semiconductor policy. Domestic and international companies making a beeline for the state, which is already seeing over ₹ 100,000 crore being invested for semiconductor facilities. The state government is also providing 40% subsidy for capital expenditure.
About The Author
