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Here’s how Tesla’s Elon Musk explains his support for a seemingly anti-EV presidential ticket
Tesla (TSLA) CEO Elon Musk is supporting it more fervently (and apparently financing) a Republican presidential ticket made up of two candidates deeply skeptical of government subsidies that have helped their company and the electric vehicle industry.
Senator JD Vance, Trump’s new running mate, is notably to the right on this issue, even of many Republicans.
Musk’s response — both on Tuesday morning and in recent months — has been to dismiss any concerns.
“Take away the subsidies,” he wrote in the early hours of Tuesday morning“This will only help Tesla.”
But Vance would go even further.
In the Senate, Vance leads the charge about a bill called the Drive American Act which aims to not only eliminate electric vehicle subsidies, but “replace them with the America First Vehicle Credit to promote gasoline-powered vehicles.”
However, after formally endorsing Trump this weekendMusk then publicly lobbied for Vance and immediately announced the choice, saying the new ticket “Resounds with victory.”
Tesla CEO Elon Musk at a conference in Washington in 2020. (AP Photo/Susan Walsh) (ASSOCIATED PRESS)
Some Wall Street analysts think it could be a shrewd move by Musk, and the removal of government subsidies could actually hurt Musk’s EV rivals more than him. Others are less certain.
In any case, Musk’s position also ignores his own decades-long history as a beneficiary of generous government support.
Musk has also touted his open line of communication with Trump when this issue is raised. He said at a recent Tesla shareholder meeting that the former president “calls me out of the blue for no reason,” where Musk then defends EVs.
“I’m persuasive,” Musk added.
But Trump has not been persuaded to the cause of electric vehicles, at least publicly.
While Trump has expressed admiration for Musk personally, the former president has attacked electric vehicles as a bad product at nearly every campaign stop.
“Who wants to drive an electric car for the rest of their life?” he recently asked a Florida crowd. The crowd quickly began to boo this idea vigorously.
Musk, however, also promised $45 million per month in donations to a pro-Trump super-PAC to help Trump win a second term, according to the Wall Street Journal. Musk has also spoken to Trump in recent days to defend Vance directly, according to a CNN report.
Former President Donald Trump and Republican vice presidential nominee J.D. Vance wave to the crowd 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)
Trump/Vance could hurt electric vehicles but help Tesla?
Whether the Trump/Vance administration actually hurts Tesla or the electric vehicle industry (or both) is a point of contention on Wall Street.
Wedbush’s Dan Ives argued in a recent live appearance on Yahoo Finance that Tesla’s dominant position in the industry could help the company keep rivals at bay and “widen the gap and technology lead.”
The story continues
But Guggenheim’s Ron Jewsikow said major changes like repealing the Biden-era $7,500 electric vehicle tax incentive — which both Trump and Vance are promising — would remove a “key enabler of affordability” for Tesla.
Musk himself has long been against all government credit, writing tuesday“remove subsidies from all industries!”
Tesla representatives did not respond to Yahoo Finance’s questions about whether the post meant Musk would oppose Vance’s call for new subsidies for oil and gas-powered cars.
In any case, the anti-subsidy position is what Musk has taken at least since 2021He said the benefits Tesla has received from Biden’s electric vehicle incentives are minimal.
But Tesla has long benefited from government tax credits, and government support has helped Tesla get to where it is today. The website Grant Tracker estimates that Tesla has received 109 government awards since 2007, with an estimated value of nearly $3 billion.
A Los Angeles Times Investigation raised the tally even higher and estimated that Musk’s various companies received about $4.9 billion in government support in 2015 alone.
Musk focuses intently on other issues
Musk’s focus on tax credits and subsidies — at least publicly — pales in comparison to other issues.
A review of your X Feeding reveals a flurry of political commentary, almost exclusively on matters largely unrelated to the financial results of their companies.
In less than 18 hours since Vance’s announcement, for example, Musk has spoken out on issues such as transgender children in public schoolsif the director of the secret service should be fired, media traffic patternsand many others.
Musk has been particularly excited about immigration to the point that, as the The Wall Street Journal recently reportedhe held talks with Trump about a formal role in the matter in 2025. Musk denies those talks took place.
Musk’s recent support for Trump is also the culmination of years of growing ties between the Republican Party and the world’s richest man.
It was almost two years ago that Musk first appeared at a Republican Party fundraiserspeaking at a 2022 GOP donor retreat in Wyoming hosted by then-House Republican Leader Kevin McCarthy.
Musk has also been deeply critical of Biden almost since the moment he took office.
The CEO also appeared to acknowledge Tuesday morning that part of his strong pro-Trump stance now owes to actions early in the Biden administration that prioritized his rivals’ electric vehicle efforts.
Responding to a post that highlighted Biden’s previous embrace of GM’s electric vehicle efforts (GM) about Tesla, Musk responded: “I try not to start fights, but I do finish them.”
Ben Werschkul is a Washington correspondent for Yahoo Finance.
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