Musk realizes there is little reason for the Federal Government to continue to subsidize EVs, particularly over hybrids (which produce less pollution to produce). He also realizes his greatest threat is coming from Chinese EV makers which Trump will reliably keep out of the US with massive tariffs.
Donald Trump is a big fan of Elon Musk and Tesla's 'incredible' electric cars — but not all EVs
The former president has pledged to scrap pro-EV rules if he returns to the White House
By William Gavin, Quartz Media
PublishedYesterday
Former President Donald Trump on Monday complimented Tesla CEO Elon Musk’s “great product” —but maintained his opposition to the electric vehicle industry.
“That doesn’t mean everybody should have an electric car, but these are minor details, but your product is incredible,” Trump said Monday evening during a roughly two-hour conversation with Musk on Musk’s social media platform X.
It was just the latest instance of Trump expressing his admiration and support for Musk, who has endorsed the Republican presidential nominee and launched a super PAC working to aid his candidacy. But that sentiment doesn’t extend to the broader electric vehicle industry, which is worried a possible Trump administration would gut his predecessors’ push away from vehicles that run on gas.
In the past, Trump has said electric cars will “kill” the U.S. auto industry and labeled automakers’ moves to produce more EVs a “transition to hell. While his rhetoric has softened somewhat in recent months, he claimed as recently as last month that ending a so-called mandate on EVs would save the auto industry from “complete obliteration.”
“I’m for electric cars. I have to be because, you know, Elon endorsed me very strongly,” Trump said during a Georgia rally earlier this month. “So, I have no choice.”
At that rally, he clarified that he supports EVs as a “small slice” of the larger auto industry, which he wants to have “every kind of car.” Trump has rallied against a recent federal rule on tailpipe emissions that was favored by automakers, repeating an oil-lobby claim that it is an EV “mandate” that bans gas-powered cars.
Trump has also promised to put a freeze on the grants included in President Joe Biden’s Inflation Reduction Act, which helped push companies to invest $124.7 billion in clean energy projects since it was passed in August 2022, including some $77.6 billion in EV projects, according to Manufacturing Dive.
Pro-EV advocates are also concerned that Trump would do away with the $7,500 tax credit for EVs, which has helped persuade consumers to make the switch to electric. As of May, EV buyers have saved $600 million since January on buying new electric cars, according to the Treasury Department. Trump’s running mate, Ohio Sen. J.D. Vance, has submitted legislation to remove the EV tax credit and replace it with a similar credit for gas-powered cars.
While doing away with the federal tax credit could hamper EV adoption rates and sales for automakers, Musk has expressed his support for removing all subsidies on the auto industry. During an earnings call last month, he said doing away with the IRA tax credits “probably actually helps Tesla (TSLA)” in the long term because it would hurt rivals. After poor sales last quarter, Tesla’s share of the EV market sank to below 50% for the first time since it rose to the top.
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