Tesla CEO Elon Musk warned Tuesday that Donald Trump’s probable withdrawal of support for electric vehicles will impact other automakers more than Tesla
Musk stated in a post-earnings conference call that Tesla’s lowest profit margin in over five years would be “devastating” for its competitors and would slightly harm Tesla. However, he speculated that it would likely benefit Tesla long-term.
Former President Trump, the Republican candidate Musk endorses, has expressed his dissatisfaction with the EV policies of the Biden administration and has declared that he will “end the electric vehicle mandate” if elected.
Trump still needs to provide a comprehensive explanation of the strategy.
According to Musk, Tesla is an artificial intelligence corporation that concentrates on self-driving technology, so the removal of subsidies by Trump and the subsequent impact on Tesla car sales were not critical.
“Autonomy is the primary value of Tesla.” Musk stated, “These other things are in the background about autonomy.”
Following an assassination attempt on the presidential candidate earlier this month, the industrialist declared his support for Trump.
Musk has denied a media allegation that he had pledged to donate $45 million per month to Trump. However, he has stated that he has established a political action committee.
Tesla enthusiasts were somewhat perplexed by Musk’s endorsement of Trump, as they wondered how his election would benefit the electric vehicle manufacturer.
Last year, JD Vance, Trump’s nominee for vice president, introduced a measure that would replace EV subsidies with a credit to encourage the use of gas-powered vehicles.
However, it has negligible chances of being passed in the current Congress.
Last week, Musk stated in a post that opened a new tab on X, “Remove the subsidies.” It will be beneficial for Tesla. Additionally, it is imperative to end subsidies for all industries.
Trump declared in his acceptance speech at the Republican Party’s convention in Milwaukee last week that his administration would impose 100% to 200% tariffs on automobiles manufactured in Mexico to render them “unsellable” in the United States.
Musk announced on Tuesday that the electric vehicle manufacturer has suspended its plans to construct a plant in Mexico and will reevaluate the feasibility of establishing a new gigafactory in the country following the U.S. presidential election.
“Trump has said that he will put heavy tariffs on vehicles produced in Mexico, so it doesn’t make sense to invest in Mexico,” he said.
Musk stated that Tesla is substantially expanding its capacity at its current factories and intends to manufacture robotaxis at its Texas facility.
