Tesla (TSLA) CEO Elon Musk is more enthusiastic about the Republican presidential field, which consists of two candidates deeply skeptical of government subsidies that have supported his company and the electric vehicle industry. is supporting (and apparently funding).
President Trump’s new running mate, Sen. J.D. Vance, is notable for taking positions further to the right than many Republicans on this issue.
Musk’s response on Tuesday morning and in recent months dismissed concerns.
“Take away the subsidies,” he wrote early Tuesday morning. “It only helps Tesla.”
But Vance intended to go further.
In the Senate, Mr. Vance is spearheading a bill called the Drive American Act, which would not only eliminate EV subsidies, but would also “incentivize gasoline-powered vehicles by converting subsidies into America First Vehicles. The purpose is to replace it with credits.
Nevertheless, after publicly endorsing Trump this weekend, Musk publicly appealed for Vance’s support and quickly touted his nomination, saying the new ticket “sounds like victory.”
Tesla CEO Elon Musk attended a conference in Washington in 2020. (AP Photo/Susan Walsh) (ASSOCIATED PRESS)
Some Wall Street analysts believe this could be a cunning move on Musk’s part, and that eliminating government subsidies could certainly hurt EV rivals more than Musk. Some people think so. Others are less sure.
In any case, Musk’s position also ignores his own decades-long history of receiving generous government support.
Musk also touted open communication with Trump when the issue was raised. Musk said at a recent Tesla shareholder meeting that the former president was “calling me out of the blue for no reason,” after which Musk made the case for EVs.
“I’m very persuasive,” Musk added.
However, President Trump has not been persuaded by EV claims, at least not in public.
Trump has personally expressed his admiration for Musk, but Musk has spent nearly every campaign campaign denouncing EVs as inferior products.
“Who wants to drive an electric car for the rest of their life?” he asked a crowd in Florida recently. The crowd immediately started booing the idea greedily.
Despite this, Musk has pledged to donate $45 million a month to a pro-Trump super PAC to help Trump win a second term, according to the Wall Street Journal. CNN reported that Musk also met with Trump in recent days to directly press Vance’s claims.
Former President Donald Trump and Republican Vice Presidential Candidate J.D. Vance wave to the audience during the first day of the 2024 Republican National Convention in Milwaukee. (Andrew Caballero-Reynolds/AFP via Getty Images) (Andrew Caballero-Reynolds via Getty Images)
Can Trump/Vance help Tesla even if it damages EVs?
Wall Street is divided on whether a Trump/Vance administration will actually hurt Tesla or the EV sector (or both).
Wedbush’s Dan Ives said in a recent live appearance on Yahoo Finance that Tesla’s dominant position in the industry could help the company fend off rivals and “widen its lead and technological lead.” He claimed that there was.
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But Ron Jusikow of the Guggenheim Museum said big changes, such as eliminating the Biden administration-era $7,500 EV tax break promised by Trump and Vance, are “key affordability enablers” for Tesla. He said it would eliminate the “factor”.
Musk himself has long been opposed to all government financing, writing on Tuesday: “Remove subsidies from all industries!”
Tesla representatives did not respond to Yahoo Finance’s questions about whether the post meant Musk opposed calls for new subsidies for oil and gas-fueled vehicles.
In any case, the anti-subsidy stance is one that Musk has taken since at least 2021. He said Tesla received minimal benefit from Biden’s EV incentives.
However, Tesla has benefited from government tax credits for many years, and government support has helped Tesla get to where it is today. The website Subsidy Tracker estimates that Tesla has won 109 government awards since 2007, worth an estimated $3 billion.
A Los Angeles Times investigation puts the number even higher, estimating that Musk’s various companies received about $4.9 billion in government aid through 2015 alone.
Musk is passionate about other issues
Mr. Musk’s focus on tax credits and subsidies — at least publicly — pales in comparison to other issues.
Check out his X feed and you’ll see a flood of political commentary, almost exclusively with little to do with his company’s bottom line.
As an example, less than 18 hours after Vance’s announcement, Musk weighed in on a number of issues, including transgender children in public schools, whether the head of the Secret Service should be fired, and media circulation patterns.
As the Wall Street Journal recently reported, there has been enthusiasm, especially from immigrants, that Musk has even spoken to President Trump about a formal role on the issue in 2025, but Musk has denied any talks will take place. He denies what happened.
Musk’s latest endorsement of Trump is also the culmination of years of strengthening the Republican Party’s relationship with the world’s richest man.
It was nearly two years ago that Musk first appeared at a Republican fundraiser, speaking at the 2022 Wyoming Republican Donor Camp hosted by then-House Republican Leader Kevin McCarthy.
Musk has been a fierce critic of Biden since the moment he took office as president.
The CEO also appeared to acknowledge Tuesday morning that his current strong pro-Trump stance is due in part to actions by the Biden administration early on that prioritized rival companies’ EV efforts. .
In response to a post that pointed to Biden’s past acceptance of GM’s EV efforts over Tesla, Musk said, “I’m trying not to start a fight, but I’m trying to end a fight.” “Yes,” he replied.
Ben Werschkul is Yahoo Finance’s Washington correspondent.
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