A radical Elon Musk allies himself with Donald Trump and against the interests of the electric car

The newly elected as the new president-elect of the United States, donald trumphas made its position clear regarding sustainable mobility and electric vehicles, turning this issue into one of the central axes of its presidential campaign under the slogan “Make America Great Again.” Trump has expressed concern about the impact of the electric car on North American industry, arguing that its rise is weakening the country’s industrial network and favoring Chinese manufacturers.

Among the measures that he has proposed to implement at the beginning of his mandate, the elimination of tax aid and subsidies aimed at the purchase of electric vehicles. This decision, according to Trump, seeks to protect the national economy and restore the competitiveness of American companies. However, it clashes squarely with the interests of his main supporter in the campaign, Elon Musknewly appointed Co-Director of the Department of Government Efficiency alongside Vivek Ramaswamy.

Musk becomes part of a Government that rejects the electric car

The transition of powers is already underway. Joe Biden will leave the White House in a matter of a couple of months, but the Trump and Biden cabinets are already working on a smooth transfer. The Republicans want to take very drastic measures in the first days of government and to do so They are working on the modification or annulment of many of the laws promoted by the already dismissed Biden Administration. As reported ReutersTrump’s team is planning to eliminate the $7,500 incentive for the purchase of electric cars, although at the moment no one from the new president’s entourage has commented on the matter.

Such an environmental political turn would not be strange at all. What is surprising is that Elon Musk, president of Tesla, the largest electric car company in the world, the first in the United States, supports the measure. It is not the first time that he has declared himself in favor of eliminating tax advantages. Trump and Musk have created a strange and controversial bond throughout the entire election campaign. The American businessman has contributed large sums of money to the presidential campaign, up to 130 million, some sources cite. Despite the contrary measure that would hurt Tesla’s sales, Musk can benefit greatly from the change.

According to Elon Musk, Tesla’s sales and popularity are so on track that nothing will reduce market share. Many drivers around the world have demonstrated their intention to switch to an electric car and Tesla is the best valued company. Although there may be a loss in sales, everyone assumes that Tesla and the rest of Musk’s companies will benefit greatly from Trump’s arrival in the Oval Office. Without going any further, Tesla shares have appreciated significantly in just one week, recovering much of what was lost this year.

Although Tesla is not harmed by the new Republican policies, the rest of the American market may suffer the negative consequences of eliminating aid. Electric registrations in the United States have been uneven in recent times. Despite the large discounts promoted by Biden, Sales of electric cars barely represent 9% of the total vehicle fleet. Many of these drivers have managed to access the electric car through the tax credit of 7,500 euros applied directly when purchasing the vehicle. You only have to look at the German case to realize how negative it is to eliminate public aid.