Tesla CEO Elon Musk has been publicly backing a Republican presidential ticket that includes two candidates who are skeptical of government subsidies for the electric-vehicle industry, despite the fact that these subsidies have helped his own company. Musk’s response to concerns about removing subsidies has been dismissive, stating that it would actually benefit Tesla. However, one of the candidates, Sen. JD Vance, is advocating for not only the elimination of EV subsidies but also their replacement with a credit for gas-powered vehicles.
While some analysts believe that this move could be advantageous for Musk, potentially hurting his EV rivals more than Tesla, others are unsure. It is worth noting that Musk himself has a long history of receiving significant government support. Additionally, Musk has highlighted his communication with former President Trump and his ability to make a persuasive case for electric vehicles. However, Trump has consistently criticized EVs as a bad product, despite personally admiring Musk.
There is speculation about whether a Trump/Vance administration would harm Tesla and the EV sector. Some argue that Tesla’s dominant position in the industry could allow them to maintain their lead and widen the technological gap. However, others believe that eliminating the $7,500 EV tax incentive, as promised by both Trump and Vance, would remove a key affordability factor for Tesla.
Musk has consistently opposed government credits and subsidies, not just for EVs but for all industries. While he has claimed that the benefits Tesla received from Biden’s EV incentives are minimal, it cannot be denied that Tesla has received significant government support in the past. According to estimates, Tesla has received 109 government awards totaling nearly $3 billion since 2007, with some sources suggesting the amount is even higher.
Despite his anti-subsidy stance, Musk’s focus on tax credits and subsidies is relatively minor compared to his other political interests. He frequently comments on various political issues unrelated to his company’s bottom line. Immigration has been a particularly significant topic for Musk, and there have been reports of talks between him and Trump regarding a formal role on the issue in the future. Musk’s recent endorsement of Trump is the result of years of increasing ties between the GOP and the billionaire entrepreneur.
Overall, there is disagreement among analysts about whether a Trump/Vance administration would harm or help Tesla and the EV sector. Musk’s own position on subsidies overlooks the significant government support his company has received in the past. Despite his public support for Trump and Vance, Musk’s interests and focus on political issues extend far beyond tax credits and subsidies.
