Trump 2.0 Era: New Challenges in the Energy Storage Market Behind Tesla's Surge

Global financial markets were shaken as the result of the 2024 US presidential election was announced, with Republican candidate and former President Donald Trump declaring victory in Palm Beach, Florida. Trump's victory not only triggered a stock market frenzy, but also brought new variables to the energy storage market. Against this backdrop, Tesla's stock price soared, and market expectations for the future were full of uncertainty.

Tesla's stock price soared

The news of Trump's victory broke late on the evening of November 6, immediately triggering a violent reaction in the market. Tesla's stock price rose nearly 15% at one point, increasing its market value by about 120 billion US dollars and making it the leader of this round of stock market frenzy. Tesla CEO Elon Musk expressed his optimism about the future on social media, saying, “The future will be bright.” As an important supporter of Trump, Musk's wealth has also surged, increasing by 20.9 billion US dollars in a single day, with total assets reaching 285.6 billion US dollars, firmly establishing him as the richest person in the world.

This stock market volatility is not only a direct response to Trump's political influence, but also the market's expectations of his policy direction. Trump's “America First” policy may have a profound impact on the energy storage industry, especially in the production and sales of electric vehicles and energy storage systems.

The current situation and future of the energy storage market

Currently, the US energy storage market is in a period of rapid development. According to data, the price of grid-scale energy storage systems in the US was 1,116 USD/kW in the second quarter of 2024, a year-on-year decrease of 33.57%, a record low. The average price of Tesla's energy storage systems has also decreased, depending on the capacity and configuration of the energy storage system. This decline in price levels reflects increased market competition and technological progress.

However, Trump's election may have an impact on this trend. Trump has always pursued protectionism and may support the development of the local energy storage industry through policies, which in turn will affect market prices and the competitive landscape. For Chinese energy storage companies that rely on the US market, Trump's protectionist policies will pose many challenges.

Potential impact of policy changes

During his campaign, Trump repeatedly expressed support for traditional energy sources and said he wanted to abolish existing clean energy subsidy policies. His policy proposals include expanding oil and gas drilling in the Arctic and promoting the development of fossil fuels. These policies may lead to a reduction in investment in clean energy, which will affect the long-term development of the energy storage market.

In addition, Trump may impose higher tariffs on Chinese goods, which will directly affect trade relations between China and the United States. As one of the world's largest producers of energy storage equipment, Chinese companies face great uncertainty. In the future, some industries that rely on the US market will need to quickly adapt to the new trade environment in order to cope with possible changes in export structure.

Short-term market reaction

During the transition period of the power transition, policies are often accompanied by great uncertainty, so some energy storage projects are likely to usher in a rush to install. Industry analysts believe that although Trump may not strongly support the development of energy storage batteries after taking office, the market activity may increase in the short term due to policy uncertainty.

On September 20, the U.S. Department of Energy announced that it would allocate more than $3 billion to 25 battery projects in 14 states to promote domestic battery production. This move shows the government's emphasis on the energy storage industry and provides financial support for future market development.

Conclusion

Trump's victory has brought new opportunities and challenges to the energy storage market. In the short term, the market may fluctuate due to policy uncertainty, while in the long term, the development of the energy storage industry will be deeply affected by Trump's policies.

In the face of the upcoming “Trump 2.0 era,” energy storage companies need to pay close attention to policy trends and actively adjust their market strategies to respond to future challenges and opportunities.