Donald Trump has criticized Elon Musk, asserting that Tesla's success is heavily contingent upon government subsidies. Trump claims that without federal support, Musk's enterprises would struggle to survive, suggesting a hypothetical scenario where Musk might be compelled to abandon his business ventures and return to South Africa . This sentiment reflects broader concerns regarding the sustainability of EV companies reliant on governmental financial assistance.
Musk vowed to defeat politicians who support Trump's bill, saying, "They will lose their primary next year if it is the last thing I do on this Earth."
When reached for comment, the White House referred Business Insider to Trump's recent interview with Fox News' Maria Bartiromo that aired Sunday, ahead of the Tesla CEO's latest comments.
When asked about their relationship, Trump said Musk was a "wonderful guy" but that his comments about the president were not "appropriate." He also defended the spending bill, saying it would cut taxes and improve border security.
Mr. Musk has had a tenuous, brief relationship with the Republican Party. A longtime Democrat, he began identifying with the G.O.P. only in 2022, and only began making heavy, public contributions to the party ahead of last November’s election. His extraordinary blowup with Mr. Trump in early June hastened his stated interest in the formation of a new party. He made a poll on X amid the feud asking: “Is it time to create a new political party in America that actually represents the 80% in the middle?”
Forming a viable third party would be a herculean task, and there were no immediate signs on Monday that Mr. Musk or his advisers were preparing to do anything concrete.
Tesla has benefitted from a popular $7,500 consumer tax credit for electric vehicles that Trump’s bill will eliminate. The automaker is set to release second-quarter sales later this week that will likely show a further slump in demand.
The implications of Trump's criticisms extend beyond mere rhetoric; they signify a potential shift in policy that could adversely affect the EV sector. By proposing a repeal of existing tax credits and implementing tariffs on imported EV components, Trump's administration aims to reshape the market dynamics in favor of domestic production . However, such measures could inadvertently inflate production costs and diminish consumer demand for electric vehicles.
Interestingly, despite these critiques, Musk has shown an unexpected alignment with some of Trump's policies. This collaboration may stem from an intention to bolster Tesla’s competitive edge or pivot towards advancements in autonomous vehicle technologies . Thus, while Trump's targeting of Musk raises questions about dependency on government aid within the EV industry, it simultaneously opens avenues for strategic partnerships that could redefine the future landscape of transportation technology.
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