Tesla (TSLA) CEO Elon Musk is becoming more enthusiastic about supporting (and apparently funding) a Republican presidential candidate duo that is deeply skeptical of the government subsidies that have helped his company and the electric-vehicle industry.
President Trump’s new running mate, Senator J.D. Vance, is notable for taking a more right-wing position on this issue than many Republicans.
Musk’s response dismisses all concerns, both on Tuesday morning and in recent months.
“Removing the subsidy would only help Tesla,” he wrote early Tuesday morning.
But Vance did much more than that.
In the Senate, Senator Vance is leading the push for a bill called the Drive American Act, which aims not only to eliminate EV subsidies but also to “replace them with the America First Vehicle Credit to incentivize gasoline-powered vehicles.”
Nonetheless, after formally endorsing Trump this weekend, Musk publicly lobbied to back Vance, immediately touting his selection and saying the new slate of nominees “rings with a triumph.”
Tesla CEO Elon Musk attends a conference in Washington in 2020. (AP Photo/Susan Walsh) (AP)
Some Wall Street analysts think this could be a shrewd move by Musk, and that the end of government subsidies could hurt rival electric vehicle makers more than Musk himself. But others aren’t so convinced.
Either way, Musk’s position ignores his own history of generous government support over the decades.
Musk has also touted his open communications with Trump when the issue has come up, saying at a recent Tesla shareholder meeting that Trump would “call me out of the blue for no reason” and tout the need for electric vehicles.
“I’m persuasive,” Musk added.
But, at least publicly, President Trump is not convinced to support EVs.
While Trump has praised Musk personally, the former president has denounced EVs as bad products on nearly every campaign rally.
“Does anybody want to drive an electric car for the rest of their lives?” he asked a crowd in Florida recently, who immediately began booing the idea vehemently.
According to The Wall Street Journal, Musk has nonetheless committed to donating $45 million a month to a pro-Trump super PAC to help Trump’s reelection. CNN reported that Musk recently spoke directly with Trump and defended Vance.
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)
Could Trump/Vance hurt EVs and help Tesla?
Whether a Trump/Vance administration would actually hurt Tesla and/or the EV sector is a point of contention on Wall Street.
Wedbush’s Dan Ives, speaking live on Yahoo Finance recently, argued that Tesla’s dominant industry position will help the company hold off its rivals and “widen its gap and extend its technological lead.”
The story continues
But Guggenheim’s Ron Jusikow said any major changes made during the Biden administration, such as eliminating the $7,500 EV tax credit (promised by both Trump and Vance), would mean Tesla would lose a “key element of affordability.”
Musk himself has been a long-time opponent of all government subsidies, writing on Tuesday that he wants to “end subsidies from all industries!”
A Tesla representative did not respond to Yahoo Finance’s questions about whether the post meant Musk opposed Vance’s call for new subsidies for oil- and gas-powered vehicles.
Either way, the anti-subsidy stance is one Musk has taken since at least 2021. He has said Tesla has only marginally benefited from Biden’s EV incentives.
But Tesla has benefited from government tax credits over the years, and government support has helped the company become what it is today: The website Subsidy Tracker estimates that Tesla has received 109 government subsidies since 2007, totaling roughly $3 billion.
A Los Angeles Times investigation estimated the total was even higher, with Musk’s various companies receiving roughly $4.9 billion in government assistance in 2015 alone.
Musk is also passionate about other issues.
Musk’s focus on tax credits and subsidies, at least publicly, pales in comparison to his other issues.
A look at his X feed reveals a ton of political commentary on subjects that have little to do with his company’s bottom line.
For example, within 18 hours of Vance’s announcement, Musk had spoken out on a range of issues, including transgender children in public schools, whether the director of the Secret Service should be fired and media trends.
Musk has been particularly passionate about immigration, so much so that, as The Wall Street Journal recently reported, he has discussed with Trump a formal role on the issue in 2025. Musk denies that any discussions have taken place.
Musk’s recent endorsement of Trump also marks the culmination of a long-standing and strengthening bond between the Republican Party and the world’s richest man.
Musk’s first appearance at a Republican fundraiser was nearly two years ago, when he spoke at the 2022 Republican Donors Retreat in Wyoming, hosted by then-House Republican Leader Kevin McCarthy.
Musk has been a vocal critic of Biden since he took office.
The CEO also appeared to acknowledge Tuesday morning that his current strong pro-Trump stance is due in part to early Biden administration actions that prioritized rival EV efforts.
In response to a post noting that Biden has in the past supported General Motors’ electric vehicle efforts over Tesla, Musk replied, “I try not to start fights, but I do end fights.”
Ben Werschkul is Yahoo Finance’s Washington correspondent.
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