Elon Musk endorses Trump but Tesla continues to lobby for EV subsidies

Elon Musk’s recent decision to endorse Donald Trump for the president has created a multifaceted political and business story. While Musk has openly endorsed Trump, who has recently spoken against EV requirements and incentives that have boosted Tesla, his company keeps pursuing government support measures which are typically supported by Democrats.

Last month, Musk supported Trump, who promised to “drill, baby, drill,” against EV mandates, and slashing subsidies essential to Tesla. Government policies such as loans, tax credits, and other incentives have been crucial in the growth of Tesla as a premier EV maker. However, even though Musk is a known supporter of Trump’s Republican position, Tesla is still heavily involved in advocating for the governmental support to continue.

For instance, in February, the company submitted a petition to the U. S. Environmental Protection Agency (EPA) in support of California’s authority to set higher emissions standards for vehicles—a stance that opposes that of Trump. Previous submissions included advocacy for rules to eliminate most new gasoline cars by 2035, a policy that Trump and his friends have opposed.

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This apparent contradiction is due to Musk’s utilitarian vision of subsidies. “Elon has this habit of claiming he does not like subsidies while Tesla is devouring them like the Godzilla from Mothra,” said Mike Murphy, a Republican political consultant and founder of the EV Politics Project. Musk’s acceptance of government aid despite all his criticism shows that he is more concerned with the market advantages of the business rather than sticking to a particular party.

According to Andrew Ward, a management professor at Lehigh University, Musk’s interest in entire industries like artificial intelligence and space travel may cause him to value larger goals than those benefited by Tesla. “Tesla is not the endgame for him,” Ward said, which means that Musk is ready to disregard short-term clashes in the industry for further purposes.

The financial dynamics of Tesla, which is one of the leaders of the industry, are also going to prove that the company has always been operating with the help of government support. To provide an indication of the scale of government support, the company received a USD 465 million loan from the U. S. Department of Energy for its Fremont factory which was repaid in advance. Also, once again Tesla’s profit savior types out almost USD 9 billion dollars from selling regulatory credits since the beginning of 2018.

This is even though Musk has lately begun cozying up to Trump, which manifested through him endorsing Trump and funding a political action committee for the latter, Tesla Motors is not relenting in pressuring the administration to advance policies that would benefit the company and its business model. So, while Tesla continues to lobby, it raises some question about the intersection between the personal political activism of an officer and business exigencies of a quickly expanding upstart.

Neither Musk nor Tesla have commented on these developments when asked to do so. The mixed and complex political orientations of Musk and his endorsements are still one of the active areas of discussion regarding his business strategies and Tesla’s actions.