news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Tesla CEO Musk posted three posts in a row after former US President Trump was attacked, saying that he "fully supports President Trump."

Musk has not yet commented on the news that he donated to Trump's campaign just one day before the attack.

Recently, Musk and Trump have formed a "secret alliance." Musk said at Tesla's annual shareholder meeting that Trump told him in an "unexpected" phone conversation that he was a "super fan" of Tesla's new Cybertruck model.

As the largest electric car manufacturer in the United States, how Tesla will benefit from Trump's future new energy policies has also attracted widespread attention.

Trump never supported electric cars

Musk currently ranks first on the list of the world's richest people. According to the Forbes Rich List, Musk's personal net worth is $245.7 billion. Tesla is Musk's main source of wealth. In the past three months, Tesla's stock price has soared by more than 45%.

Musk not only owns Tesla, he also owns other technology companies such as the space exploration company SpaceX and the social media company X. In particular, the fields in which Tesla and SpaceX are located are highly dependent on government contracts and federal subsidies, and the energy, electric vehicles and economic policies of the United States will affect the company's business.

Signs of a thaw in relations between Trump and Musk came in March, when Trump met with Musk and other Republican donors at Mar-a-Lago, though Musk later denied donating to Trump.

Musk recently publicly stated: "Trump does call me often for no reason." Although Trump opposes subsidies for new energy vehicles, he has also publicly stated that he is a loyal fan of electric vehicles and a fan of Musk.

This reflects the Trump administration's contradictory attitude between supporting traditional energy and encouraging innovative technology. Although Trump recognizes Musk's contribution to innovation and calls him a "great genius," he believes that Tesla has received too many government subsidies and these subsidies should not continue.

Trump has diverged from Biden on new energy policy. He has made no secret of his disdain for electric vehicles, claiming they don't work and will benefit other countries while hurting American auto workers.

Last month, Trump once again publicly stated that he would completely reverse Biden's electric vehicle policy. When he participated in the campaign, he promised that if he was elected as the US president, he would immediately repeal Biden's climate bill, increase investment in fossil fuels, and revoke regulations aimed at accelerating the transition to electric vehicles.

In a campaign video released late last year, Trump said: "America's energy is weak, substandard and unaffordable because it relies on wind power. Windmills rust, they rot and they kill birds."

Trump announced in 2017 that the United States would withdraw from the Paris Climate Agreement, which directly led to Musk's withdrawal from Trump's Economic Advisory Council, showing the two's obvious differences on climate policy.

During his tenure, the Trump administration tried to reduce or eliminate federal tax incentives for purchasing electric vehicles, which are an important policy tool to encourage consumers to buy electric vehicles. He also expressed doubts about the electric vehicle market and technology on many occasions, believing that there are problems with its market demand and actual benefits.

Tesla may be a beneficiary of Trump's campaign

The Biden administration has provided large subsidies for electric vehicles in the United States, made "transition to electric vehicles" one of its top climate and industrial policies, and set a goal of making 50% of new car sales electric vehicles by 2030.

The Inflation Reduction Act enacted by Biden is seen as a core policy of the US economy, but Trump called it "the biggest tax increase in history." He criticized Biden's climate policies, accusing them of raising gasoline prices and undermining the achievements of ensuring US "energy independence."

On March 20 this year, the Biden administration announced the introduction of strict restrictions on automobile exhaust emissions, which the market called "the strictest new automobile emissions regulations in U.S. history." However, the U.S. oil and ethanol industry organizations recently filed a lawsuit to block this emission standard, saying that these limits "illegally" forced automakers to sell electric vehicles.

Trump's opposition to the development of electric vehicles makes it seem impossible for him to form an "alliance" with Musk. Even so, Musk still chooses to stand in the same camp with Trump, which may be because Tesla has not benefited from Biden's new energy policy. According to the Inflation Reduction Act, only new energy vehicles assembled by union workers in North America can receive tax credits, and most Tesla cars are excluded.

Market analysts said that after Trump takes office, he may impose higher tariffs on Chinese electric vehicle manufacturers, which may be a good thing for Tesla.

The US market remains Tesla's largest market, with Tesla's US revenue accounting for 47% in 2023. In the second quarter of this year, Tesla electric vehicles accounted for half of all electric vehicles sold in the United States.

Wedbush analyst Dan Ives said in a note to clients last week that while Trump's re-election would have an overall negative impact on the electric vehicle industry, it could still be a "potential positive" for Tesla.

Ives explained that if the government cancels the $7,500 federal tax credit for buying new electric vehicles, Tesla could have a "clear competitive advantage" and regain market share. Hedge fund Ambienta also believes that Trump's tariff policy could benefit Tesla.

Stephen Dyer, partner and managing director of AlixPartners, co-head of Greater China and head of automotive and industrial products consulting business in Asia Pacific, told Yicai Global: "Chinese automakers are based at the center of the global automotive industry, and American automakers are also worried that they will lose their competitive advantage again."