The final chapter of the electric vehicle price war ignited by Tesla’s Elon Musk could hinge on the outcome of the November elections, especially if former President Trump wins.
Trump has expressed no issues with EVs and recently stated, “I will end the Electric Vehicle Mandate on Day One — thereby saving the US auto industry from complete obliteration, and saving US customers thousands of dollars per car.”
Translation: The former president states that all federal EV subsidies will end if he wins in November.
But why would Musk support a complete reversal in the federal government’s policy on EV subsidies if Tesla relied so heavily on the EV credits to stoke demand? Unless Tesla is at the point where it no longer needs the taxpayer-funded gravy train.
Last week, X user Whole Mars Catalog wrote on X:
“Tesla doesn’t need subsidies. The other unprofitable EV makers do. We are giving $7,500 to people who buy GAS cars with a small battery. We are capping the price of EVs, hurting the profitability of the industry. If the EV tax credit dies I won’t shed a tear for it.”
Musk responded: “Take away the subsidies. It will only help Tesla. Also, remove subsidies from all industries!”