By Andy Swan Business is back, baby! And just in time for the holidays. (I hope you’re enjoying yours with family and friends today.) It's as if a weight has been lifted off of the shoulders of the maker-class. In 2025, we’re looking toward major technological and energy production advancements as a climate of deregulation turns government headwinds into tailwinds. Deregulation will be a dominant theme of Trump’s second presidency, with major shifts anticipated across energy, finance, technology, and health care. Why are we so certain? Because the precedent has already been set. Donald Trump aggressively pursued deregulation to cut federal oversight and drive economic growth during his first term in office, evidenced by the significant drop in the number of new rules reviewed by the Office of Information and Regulatory Affairs (OIRA). In November 2020, Trump withdrew the U.S. from the Paris Climate Agreement, ending international climate commitments to focus on domestic economic interests. He also lifted restrictions on offshore drilling across nearly all U.S. coastal waters, declaring this move would “unleash American energy.” Trump reduced compliance burdens on regional and community banks, signing the Economic Growth, Regulatory Relief, and Consumer Protection Act and increasing the asset threshold for regulatory scrutiny from $50 billion to $250 billion. “We’re going to be doing a big number on Dodd-Frank. The banks are going to be able to lend again,” he said. He also introduced a “two out, one in” policy for new regulations to reduce overall government oversight. With Trump back in the White House, deregulation is once again on the table for 2025. The 2025 Trump Bump Since his reelection, Trump has doubled down on his commitment to deregulation, particularly in emerging technology sectors. We’ve seen how his presidential election victory lit a fire under many “Big Tech” names as the market looks toward supportive policies that could foster innovation and expansion. At LikeFolio, we’re tracking a spike in deregulation interest in the aftermath of the 2024 election results: Source: Google Trends This topic immediately started trending on X (formerly Twitter) as consumers and investors alike try to hone in on the sectors set to pop from new Trump policies. Reduced oversight under the incoming Trump administration could open business opportunities, cut operational costs, and drive market changes across sectors like health care, finance, and technology. But investors must stay alert to capitalize on these shifts. One segment still ripe for growth and disruption – where we’ll find our top pick – is in autonomous driving… The Ultimate “Trump Bump” Pick There's a reason Tesla (TSLA) is surging to all-time highs in the wake of Trump’s victory – several, actually. Trump’s administration could streamline regulatory approval of Tesla’s autonomous driving technology, which is an enormous catalyst for the company’s growth prospects and long-term valuation. Deregulation in autonomous driving could allow Tesla to deploy its Full Self-Driving (FSD) software more widely, enhancing its competitive position in the self-driving car market. As it stands, the National Highway Traffic Safety Administration currently permits manufacturers to deploy 2,500 self-driving vehicles per year. But reports suggest a new Trump administration may develop a framework for regulating self-driving vehicles that would provide clarity and streamline widescale adoption of autonomous driving technology. This would allow Tesla to expand its offerings beyond EVs into broader mobility services, including robotaxis, which could generate income around the clock. The company plans to introduce a fleet of robotaxis, including the Cybercab and Robovan models, as soon as 2026. Regulatory changes could remove barriers, accelerate Tesla’s rollout, and strengthen its lead over competitors facing fragmented state rules and stricter limits. CEO Elon Musk’s ties to Trump should only further remove regulatory roadblocks for Tesla. One analyst put it this way: “In essence, Musk made a strategic and big bet on a Trump White House win that will be known as a ‘bet for the ages’ for TSLA bulls as now Tesla and Musk are set to reap the benefits from a new friendlier regulatory era in the Beltway ahead.” Musk’s growing political influence and proposed position as head of the “Department of Government Efficiency” (aka DOGE) could allow him to relieve Tesla of some government restrictions, like the multiple safety investigations that the Department of Transportation has subjected it to. And our data suggests consumers are more interested in Tesla than ever before. LikeFolio web metrics show a 6% increase in consumer engagement on Tesla’s platforms, nearing all-time highs: In addition, we analyzed 1,000 social media posts about Tesla and found that positive sentiment is actually on the rise. Despite certain doom and gloom headlines that would have you think Musk’s political involvement is tarnishing the brand, enthusiasm is growing. The percentage of positive posts (relative to all sentiment-indicating posts) grew from 50% in 2023 to 60% in 2024: Bottom line: We’re more bullish on Tesla than we’ve ever been, especially with Trump Bump tailwinds working in its favor. The Best Time to Buy TSLA We’re fans of holding TSLA for the long haul. But if you're looking for a good time to buy, TradeSmith's new seasonality tool narrows it down to May 22: TSLA has a seasonal pattern of going up 17.97% on average between May 22 and July 1. And that pattern is 100% accurate over the last 15 years (meaning, it's gone up any given year during that time frame). By helping individual investors and traders determine the best day of the year to buy a stock… and the best day to sell – TradeSmith is giving everyone the chance to put the power of seasonality to work for them. Click here to save your spot now for their January 8 event at 10:00 a.m. ET, when TradeSmith CEO Keith Kaplan will go into even more detail about how their powerful new tool works – and even try it for yourself. Wishing you the very best this holiday season. We’ll be back on Friday with our final mega prediction for 2025. Until next time, Andy Swan Founder, LikeFolio |
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