Tesla’s Mixed Signals: Musk Endorses Trump While Company Lobbies for EV Policies

Tesla, the electric vehicle giant, finds itself in a peculiar position as its CEO Elon Musk endorses Donald Trump for president while the company continues to lobby for EV-friendly policies. This curious dynamic, reported by Reuters, highlights the complex relationship between business interests and political alignments in the EV industry

Musk’s Endorsement vs. Tesla’s Lobbying

Elon Musk’s recent endorsement of Donald Trump has raised eyebrows, given Trump’s “drill, baby, drill” stance and opposition to EV mandates. However, Tesla’s actions tell a different story:

  • In February, Tesla urged the Biden administration to allow California to pursue stricter vehicle emissions rules.
  • The company has lobbied for regulations that would ban most new gasoline car production by 2035.

Mike Murphy, a Republican strategist, aptly summarized the situation: “Elon tends to say he’s hostile to subsidies while Tesla is gobbling them up like a hungry Godzilla.”

The Role of Government Support

Tesla’s growth has been significantly bolstered by government assistance:

  • The company’s first major manufacturing facility in Fremont, California, was developed with a $465 million loan from the U.S. Department of Energy.
  • Since 2018, Tesla has earned almost $9 billion from selling regulatory credits.

California Governor Gavin Newsom emphasized this point, stating, “There was no Tesla without California’s regulatory bodies.”

Musk’s Pragmatic Approach

Despite Musk’s public statements, sources familiar with his management style suggest a pragmatic approach to subsidies. Andrew Ward, a management professor at Lehigh University, noted, “Tesla is not the endgame for him,” implying that Musk might be willing to sacrifice short-term Tesla interests for broader ambitions.

The Inflation Reduction Act and Tesla

While Musk initially criticized the Inflation Reduction Act (IRA), Tesla has since praised the law in formal comments to the Treasury and IRS. The company stated it would seek “continuing engagement…to ensure these benefits of the IRA are fully realized.”

EVXL’s Take

The discord between Musk’s political endorsements and Tesla’s lobbying efforts underscores the complexities of the EV industry’s relationship with policy. As we’ve seen in our Tesla coverage, the company’s success has been intertwined with government support and EV-friendly policies. This situation raises questions about the future of EV policy and industry growth, especially as political allegiances shift. It’s crucial for EV enthusiasts and industry watchers to stay informed about these dynamics, as they will likely shape the future of electric mobility in the United States.

Photo courtesy of Tesla


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Haye Kesteloo
Haye Kesteloo

Haye Kesteloo é editora-chefe e fundadora do EVXL.coonde ele cobre todas as notícias relacionadas a veículos elétricos, abrangendo marcas como Tesla, Ford, GM, BMW, Nissan e outras. Ele desempenha uma função semelhante no site de notícias sobre drones DroneXL.co. Haye pode ser contatado em haye @ evxl.co ou @hayekesteloo.

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