Destiny Tech100 Inc., the electric vehicle and artificial intelligence company, saw its stock plunge 5.27% in pre-market trading on Monday. The decline comes amid growing concerns over regulatory risks and potential headwinds faced by the company under the new administration.
One of the primary concerns raised by analysts is the possibility of reduced regulatory support for electric vehicles and self-driving technologies under the Trump administration. The new transportation secretary has indicated plans to cut excessive regulations for automakers, including streamlining rules for self-driving technology. However, there are also concerns over the potential elimination of federal tax rebates for electric vehicle purchases and lowered emission standards, which could impact Destiny Tech100's business model.
Additionally, the company's CEO, Elon Musk, has been vocal in his political views, endorsing far-right parties in Europe and making controversial statements. This has raised concerns about potential backlash from regulators and customers, both in the United States and globally, which could further impact the company's growth prospects.
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