How Trump’s second term could be bad for EVs, but great for Tesla
Nov 14, 2024
35:56
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In this discussion, Andy Hawkins, Verge transportation editor and expert on the automotive industry, delves into the complex relationship between Elon Musk and Donald Trump. They explore how Musk's political influence might shape the future of Tesla amid Trump’s climate policies. The conversation also highlights potential challenges for the electric vehicle market under a second Trump administration, especially concerning tariffs and regulatory changes. Can Tesla thrive in a contradicting political landscape?
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Quick takeaways
Elon Musk's substantial financial support for Donald Trump's campaign raises questions about the intersection of politics and corporate influence in the EV industry.
The potential rollback of Biden-era EV incentives under Trump's administration could significantly hinder Tesla's growth and affect the broader adoption of electric vehicles.
Deep dives
Elon Musk's Role in Trump's 2024 Campaign
Elon Musk has become a significant financial supporter of Donald Trump's 2024 presidential campaign, investing over $119 million to help secure his election. His involvement includes leveraging his platform to promote Trump and actively participating in planning Trump's second term, which has raised eyebrows regarding the intertwining of money and politics. Musk's close association with Trump's administration is highlighted by his role in co-leading an unofficial Department of Government Efficiency, which aims to reshape federal bureaucracy despite lacking official recognition. This situation underscores Musk's ambition to influence government operations while also navigating the implications of his investments in Tesla amidst political tensions.
Conflicting Interests in the EV Industry
As CEO of Tesla, Musk faces the challenge of supporting Trump, whose policies have previously politicized electric vehicles and climate change, potentially jeopardizing Tesla's market position. Despite Tesla being a leader in the EV market, the association with a president who denies climate change poses a risk where Musk must reconcile his environmental advocacy with political allegiance. There are concerns regarding Trump's agenda to undermine EV incentives and policies established under the Biden administration, which could directly affect Tesla's sales and future growth. Musk's ability to influence Trump toward a less antagonistic stance on climate issues remains uncertain, with significant implications for both his company and broader industry efforts towards EV adoption.
Impacts of Trump's Presidency on Automakers
The anticipation of Trump’s return to the presidency sparks fears of a detrimental impact on the auto industry, particularly regarding the transition to electric vehicles. His administration is expected to rollback Biden-era incentives and regulations that have been crucial for the EV market, potentially stalling progress for both Tesla and its competitors. The juxtaposition of Trump's stance on tariffs also raises alarms, suggesting that increased import fees on vehicles could disrupt supply chains and manufacturing for all automakers. Overall, this presents a chaotic environment where historical shifts in policy could redefine the future of the American automotive landscape.
Elon Musk's Broader Ambitions Amidst Political Turbulence
Musk's relationship with Trump is poised to evolve as he positions himself to exert influence without officially joining the administration, allowing him to maintain his business interests. He aims to push for favorable policies that align with Tesla's growth while potentially steering Trump towards a more supportive stance on environmental issues. The anticipation of how Musk's strategies will play out in the long run raises questions about his ability to maintain balance between corporate objectives and the political landscape. As Musk continues to navigate the complexities of this partnership, the outcomes could significantly shape both the auto industry and the broader national conversation on sustainability.
Today we’re talking about Elon Musk, Donald Trump, and Tesla — and I have to say, it feels like the first of many episodes about these three characters that we’ll be doing over the course of the next four years. Because when Elon used his wealth and influence to help Trump get elected, he also bought himself a seat at the president-elect’s inner circle. But what does the world’s richest person really want in return?
And how is the CEO of an electric car company, an outspoken advocate for combating climate change, going to square his support for Trump and a Republican policy agenda centered on climate change denial? Verge transportation editor Andy Hawkins joins me this week to make sense of it all, and to figure out how Elon and Tesla may still benefit, even if Trump's climate policy reversals and tariffs lay waste to the auto industry.
Links:
What does Trump’s election mean for EVs, Tesla, and Elon Musk? | The Verge
This election will decide what kind of car you’ll buy | The Verge
Trump says Musk will lead ‘DOGE’ office to cut ‘wasteful’ government spending | The Verge
Elon Musk attends Trump's first post-election meeting with House Republicans | CNBC
At Mar-a-Lago, ‘Uncle’ Elon Musk puts his imprint on the Trump transition | NYT
Musk believes in global warming. Trump does not. Will that change? | NYT
Elon Musk helped elect Trump? What does he expect in return? | NYT
With ready orders and an energy czar, Trump plots pivot to fossil fuels | NYT
Tesla hits $1 trillion market value as Musk-backed Trump win fans optimism | Reuters
Trump’s return dims outlook for Chinese EV makers amid tariff threats | SCMP
Credits:
Decoder is a production of The Verge and part of the Vox Media Podcast Network.
Our producers are Kate Cox and Nick Statt. Our editor is Callie Wright. Our supervising producer is Liam James.