Stellantis NV, the multinational automotive corporation, witnessed a 5% surge in its stock price during the pre-market trading session on Wednesday. This upward movement can be attributed to a proposed tax policy by former US President Donald Trump.
According to reports, Trump expressed his desire to make interest payments on car loans tax-deductible, but with a caveat – the tax benefit would only apply to vehicles manufactured in America. This announcement sent shockwaves through the automotive industry, with several major automakers, including General Motors, Toyota, Lucid, Stellantis, Tesla, Ford, and Rivian, experiencing a pre-market rally following the news.
Trump's proposal, part of a broader plan to deliver what he termed "the greatest economy in history," aims to provide tax relief to American consumers and potentially stimulate domestic manufacturing. While the specifics of the tax deduction have yet to be finalized, experts estimate that an unlimited, above-the-line deduction for auto loan interest could cost up to $10 billion per year.
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