Senator J.D. Vance (R-Ohio) praised electric vehicle innovator Elon Musk this week, despite previously expressing skepticism about the sector.
What Happened: Former President Donald Trump selected Vance to be his running mate in the 2024 presidential election.
Trump and Vance share several things in common, including not being fans of the electric vehicle sector. Their past criticism for electric vehicles had led to some investors questioning why Musk has donated to the campaign and publicly endorsed both Trump and Vance.
At the Republican National Convention, Vance had positive things to say about Musk.
"Elon and I know each other a little bit, but Elon is actually a good example of an American entrepreneur who's built a company, but also a company that's employed a lot of good American workers," Vance said in an interview with Newsmax.
Vance's comments came during a discussion on supporting American jobs.
"If you think about, you know, Elon Musk is in some ways a throwback to an older generation of American entrepreneur. He builds real things, he builds cars, he builds rockets."
Vance said an American entrepreneur like Musk is part of the "economy that President Trump wants to create."
Why It's Important: Vance previously said that he wanted to eliminate subsidies for electric vehicles, preferring instead to offer the same discounts for consumers on American-made cars.
Tesla Inc TSLA is regularly listed as having the most American made vehicles thanks to its large manufacturing facilities in the U.S. and its vertical integration manufacturing process that doesn't outsource production or parts like other automotive companies.
Vance told Newsmax that states in the "Rust Belt" are crucial in the upcoming election, evidenced by a recent rally in Pennsylvania, picking the Ohio senator as his running mate, and hosting the RNC in Wisconsin.
"Why does (Biden) want to further weaken the American manufacturing economy that allows us to project power overseas?" Vance asked.
Vance said President Joe Biden has left American workers behind, and "President Trump's going to change that."
Musk is donating to Trump's campaign and recently publicly endorsed the former president in the 2024 election.
The Tesla CEO also threw his support for Vance in a series of tweets.
"Congratulations @JDVance1! Excellent decision by @realDonaldTrump," Musk tweeted.
Trump recently praised Musk in a speech while also attacking the electric vehicle sector a few days later, criticizing a lack of chargers and blaming electric trucks as the reason to fix bridges across the country.
Wedbush analyst Dan Ives recently highlighted that a Trump win in the 2024 election could help Tesla.
“We believe a Trump presidency would be an overall negative for the EV industry as likely the EV rebates/tax incentives get pulled, however for Tesla we see this as a potential positive,” Ives said.
The analyst said Tesla has a scale and scope unmatched in the sector, and the company can operate in a non-EV subsidy environment. Higher China tariffs, which could be pursued by Trump, would also hurt Tesla's electric vehicle competition.
TSLA Price Action: Tesla shares trade at $249.23 versus a 52-week trading range of $138.80 to $280.93, according to Benzinga Pro.
Read Next:
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
