Trump is not in favor of EV vehicles; Why then is the Tesla CEO Elon Musk supporting him?

Former US President Donald Trump spoke about Elon Musk and EV Vehicles in an interview to Fox &Friends. Entrepreneur Elon Musk has extended this support to Donald Trump and the Republican party in recent times. Trump has made his position clear that he is against EV vehicles and its manufacturing.

The former president’s views on the issue of climate change are also well known. On many occasions, he has termed it as a ‘hoax’ and has refused to support climate mitigation plans. His views on EV vehicles need to be seen from this point of view. In recent times, many entrepreneurs have extended their support to Trump.

Trump on EV Vehicle:

Donald Trump during the interview said that he was against the Electric Vehicle mandate. Trump said that he would immediately put an end to the subsidies being provided on manufacture of EV vehicles including various tax breaks.


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In 2022, the US Congress passed the Inflation Reduction Act which provides $369 billion in the form of tax breaks and other financial subsidies to promote clean energy including the production of EV vehicles. Companies invested as much as $77.6 billion in the manufacture of EV vehicles, according to one estimate.

Trump’s potential action could hurt the EV vehicle sector with many companies including General Motors and Tesla suffering. Musk has already announced that the decision taken by Tesla to set up a manufacturing facility in Mexico will have to wait till the completion of the presidential election.

Tesla’s Q2 report:

The company has reportedly fallen short of expectations as far as its revenue growth is concerned. This policy change by Trump may lead to further potential risks in the future.

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Musk extends his support to Trump:

In the same interview, Trump said that it was great that Musk supported him. He said that the entrepreneur has supported him despite his policy on EV vehicles.

Further, he was surprised that Musk had announced to donate $45 million every month to Trump’s campaign team.

FAQs

Is Elon Musk, actually donating $45 million every month to Trump’s campaign team?
Musk has denied these reports. He said that he has set up a super PAC in support of Trump to attract funds for the upcoming election.

What are the disadvantages associated with political funding?
One argument is that it vitiates the atmosphere of free and fair elections. A person who receives more funds will definitely have an advantage over his opponent. Secondly, there could be a tit for tat in terms of favorable policies being framed after the elections.