By Steven Symes 
You might think Elon Musk, CEO of Tesla, would be all about tax credits for people buying EVs, but he is in fact a huge critic of the practice. Even though Tesla arguably benefited greatly from such credits before its electric cars no longer qualified, Musk was on Capitol Hill in Washington, DC yesterday calling for their abolishment.
Is this a big problem for the Cybertruck or just a joke?
This is hardly the first time he’s pushed for such a thing, but with Musk’s ardent support of Trump, plus heading up the Department of Government Efficiency, he now holds considerable sway with lawmakers. That alone should be enough to make some in the auto industry sweat.
In a report, Politico says Musk spoke with reporters gathered in the Capitol about cutting government waste. When asked if that included the $7,500 federal tax credit for buying an EV, his response reportedly was, “I think we should get rid of all credits.”
If you’re wondering what that means, on X Musk has made it clear he thinks all government subsidies in every industry should be abolished.
Take away the subsidies. It will only help Tesla.
— Elon Musk (@elonmusk) July 16, 2024
Also, remove subsidies from all industries!
Subsidies have been a favorite tool of the Biden Administration, allowing it to gain favor and compel certain activities from private industry, especially when it comes to pushing so-called “green energy.”
But many have pointed out in the past the EV tax credit has been used to justify price increases for electric cars. Plus, most people who have taken advantage of the credit are higher-income households, meaning those who make less are helping to finance their purchase. Not everyone is okay with that.
We can anticipate many in the auto industry will be clutching the pearls, declaring this will kill EVs and so on. If electric cars can’t compete without a $7,500 tax credit, that says something about their appeal to consumers.
Ultimately, this could help to further shift the auto industry at a time when so much is in flux.
Image via elonmusk/X