The only thing that Elon Musk is right

Donald Trump says his thrust to cut federal support to electric vehicles was a big momentum For Elon Musk’s dramatic tour against him this week.

That it is really true, it is the assumption of someone.

On the one hand, Trump’s determination to end federal support for electric vehicles could not have taken Musk by surprise. “Put an end to the EV mandate” has been a rallying of Trump since Before He officially started to present himself to the presidency. The obvious threat that posed to Tesla – that Musk flows, and which sells more electric vehicles in the United States that any other company – did not prevent him from enduring Trump, or spend more than $ 250 million to help him elect.

In fact, when Tesla invests in a profit call Last summer, asked Trump’s hostility to electric vehicles, Musk said that “in the long term, this probably helps” the company, because the elimination of subsidies and incentives would place national competitors like Ford and GM in a competitive drawback.

But it was a year ago.

From now on, the end of federal EV support is not only a slogan, it is a set of real changes in policy in the work, including Trump’s arrangements “A great nice bill“That the Chamber was adopted last month and that the Senate is debating now. This legislation eliminate hundreds of billions of dollars For tax credits to support EV production and purchases Joe Biden and the Democrats Put in place in 2022.

And far from helping the business, Tesla should lose big. More than a billion dollars in income per year are threatened if these tax credits disappear, projects JP Morgan. Timing could not be worse, because Tesla sales were fallThank you in large part to the way in which Trump’s Musk embrace tarnished the brand.

Thus, when it does not take a ton of imagination to find alternative explanations for Musk’s Pique – Trump nixage His choice for the chief of NASA? Assumptions that administration officials have made New York Times About his personal life? – It is difficult not to believe that the Trump war against electric vehicles is somewhere on the list of grieves of Musk.

But you don’t have to love musk, nor to approve what it has done in (and to) the government, Think that he could have a point on EV subsidies. Here is why.