Elon Musk has lent his support to Donald Trump’s vice presidential pick, Senator J.D. Vance. It’s astonishing to consider that Vance is backing legislation that could potentially devastate Tesla’s domestic sales in the US.
Musk has consistently disregarded shareholder expectations and prioritized his personal interests over his responsibilities as Tesla’s CEO.
A peculiar set of circumstances has arisen, with Elon Musk’s threat to withhold development of AI products at Tesla unless he secures a 25% stake in the company now heading to court.
The CEO’s proposed move starkly contradicts the interests of Tesla shareholders and the company’s mission to accelerate the advent of sustainable energy.
In the final days leading up to the presidential election, a controversy arose when reports emerged indicating that Elon Musk had made a significant contribution to a political action committee (PAC) supporting Donald Trump’s re-election campaign.
Prior to the PAC’s revelation of its donors today, we had been anticipating that move as a means of substantiating claims; despite Musk’s growing proximity to Trump over the past few months, this would have marked the primary official endorsement from Tesla’s CEO to the former president.
Despite this, we were spared attendance as Musk unexpectedly decided to “fully support” Trump in the wake of the attempted assassination on Saturday.
Why the Tesla CEO needs to clarify his endorsement of Trump:
As they spoke, Donald Trump announced that he had selected J.D. Vance as his running mate, prompting Elon Musk’s swift congratulations and endorsement of the decision.
Formerly a vocal Trump critic, Vance, now a US Senator from Ohio, surprisingly softened his stance as the previous president’s influence over the Republican Party grew. He has since developed into one of the most prominent and influential Trump loyalists.
As he did with his perception of Trump, Vance also revised his understanding of Tesla’s mission. He was initially a strong advocate for renewable energy, but he has since revised his stance.
Recently, Musk went one step further by introducing an innovative pricing strategy that could potentially dwarf Tesla’s sales in the US market?
Vance’s proposal would not only eliminate the incentives for purchasing battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), but also replace them with a comparable $7,500 incentive for buying American-made internal combustion engine (ICE) and hybrid electric vehicles (HEV).
Senator J.D. Vance (R-OH) has unveiled a plan to eliminate over $100 billion in existing electric vehicle (EV) subsidies, replacing them with the America First Car Credit program aimed at promoting domestically made gas-powered cars. Vance has consistently argued that the Biden administration’s current EV subsidies unfairly penalize UAW workers who construct modern, gas-powered vehicles and American consumers seeking to purchase them.
Tesla’s inventory erased a 2% value following the vice president’s decision announcement, with Musk’s assistance.
Electrek’s Take
It’s safe to say that if we’re seeking further evidence that Elon is actively working against Tesla’s interests, then there you have it.
As the federal Electric Vehicle (EV) tax credit program approaches its phase-out threshold, concerns about its eventual elimination are growing. While I doubt the wisdom of government support for Tesla or its mission, several compelling counterarguments exist against federal funding for electric vehicle (EV) purchases.
In my opinion, implementing a carbon tax would be a more effective approach to promoting electric vehicle (EV) sales than offering incentives directly, as it puts a monetary value on the environmental costs associated with traditional fossil fuel-powered vehicles.
Vance should not be considering enrollment in that program at all. He seeks to provide financial support for gasoline-driven vehicle sales, thereby diminishing the competitiveness of electric vehicles (EVs), including Teslas, in the market? The notion of such a drastic change would likely wreak havoc on Tesla’s domestic sales, with the United States being a crucial market in its own right after China.
