Elon Musk begins to achieve, or at least admit, that Trump and the GOP will hurt Tesla a lot by eliminating the batteries and solar incentives without eliminating incentives from fossil fuels.
Many people have been shocked when Elon Musk decided to support Donald Trump and the Republican Party, since they have always attacked clean energy and electric vehicles, which are Tesla’s main products.
The GOP is undergoing renewable energies for years, and it does not seem that the donation of $ 300 million from Musk to Trump and the influence on the GOP was able to change this, because the last budget to pass the congress controlled by the GOP reduces a lot of progress made by the Biden Energy Administration and the adoption of electric vehicles.
The budget removes the tax credit of $ 7,500 for electric vehicles, which is part of Tesla’s success in the United States. He also kills incentives to build batteries in the United States – another incentive that greatly benefited Tesla.
It also removes 30% tax credit on the storage of batteries and solar energy, which has greatly helped Tesla’s energy division.
Yesterday, Tesla published a statement calling for the Trump government to gradually eliminate these incentives rather than withdraw them completely:
To end the energy tax credits would threaten the energy independence of America and the reliability of our network – we urge the Senate to adopt legislation with a judicious reflux of 25D and 48th. This will guarantee a rapid deployment of more than 60 GW per year to support AI and the growth of interior manufacturing.
Musk shared the declaration and then added that if the government he helped to elect eliminate incentives for electric vehicles and clean energy, it does not eliminate them for oil and gas:
The United States encourages the petroleum and gas industry at a rate of hundreds of billions of dollars per year.
Before supporting Trump and the Republican Party, Musk said he would be for the elimination of EV and clean energy incentives if fossil fuel incentives were also deleted.
Musk officially left the Trump administration this week.
Electrek taking
It is interesting to see Musk finally express, although weakly, against some of Trump’s policies for the first time. He noted that the budget bill would increase the deficit, and now this.
A little reminder that Musk said that Trump was “the only one that could save the Western world” and that if it is not elected, the United States is essentially over.
His declared goals with Trump were to “kill the virus of the awakened mind” and master the deficit and the debt.
The United States has never been so divided and Trump pushes a budget that would add about 4 billions of dollars to American debt in the coming years. His support from Trump did nothing meaningful to these objectives. Of course, Musk’s real goal by supporting Trump was likely to withdraw federal regulators and agencies that were getting closer to him and his businesses on his back.
He managed to do this, but at what price?
The EV tax credit is an important factor in maintaining Tesla’s demand in the United States, which is essentially its last main market where it sells vehicles to profit.
The elimination of ITC of 30% for solar and energy storage would considerably slow the energy storage activities of Tesla, which has been its only growing activity in two years.
In short, the budget would considerably weaken Tesla’s affairs in the United States, which was its last remaining market which was not too bad. Canada left. Europe has disappeared and Tesla faces enormous pressure from competition in China.
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