09:12 AM EDT, 07/24/2024 (MT Newswires) -- Tesla (TSLA) Chief Executive Elon Musk said Tuesday that an end to Inflation Reduction Act credits for electric vehicles would be "devastating" for its competitors while hurting Tesla only "slightly."

Musk was responding to a question during Tesla's earnings call regarding the potential end of IRA benefits if former US President Donald Trump wins in November.

"The value of Tesla overwhelmingly is autonomy," Musk said referring to the company's focus on self-driving technology.

Musk also said Tesla will not make any more investments in its Mexico factory until after the US election due to Trump's proposed tariffs on Mexican-made vehicles. Tesla plans to expand the capacity of its existing factories and produce robotaxis in Texas, he added.

Tesla shares were down more than 8% in recent Wednesday premarket activity, extending losses from Tuesday's close after the company reported Q2 adjusted earnings that trailed analysts' estimates.

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