Elon Musk has been banging the drum for months that the Federal Reserve is chiefly to blame for Tesla’s flagging sales in its domestic U.S. market. He believes that if the Fed cuts interest rates it will make borrowing costs lower, thus fueling demand.
The start of a long easing cycle, widely expected to begin this September, could cut interest rates nearly in half by the end of 2026. But don’t expect the EV manufacturer to profit disproportionately, one former industry executive warned.
