Pete Buttigieg Responds To Elon Musk: Electric Vehicle Shift Already Happening, Government Can Help In 3 Ways

Tesla has enjoyed being the market share leader in electric vehicles in the United States for years. The company now faces increased competition from startups and traditional automakers shifting to the growing sector.

Comments from Tesla Inc TSLA CEO Elon Musk this week reflected his belief that tax credits and subsidies should no longer be awarded for the purchase of electric vehicles.

The comments prompted a response from Pete Buttigieg, the U.S. Secretary of Transportation.

Musk’s Comments: Musk spoke out against the infrastructure bill and tax subsidies for electric vehicles during his appearance at the CEO Council hosted by the Wall Street Journal.

“I’m literally saying get rid of all subsidies…but also for oil and gas,” Musk said.

Musk spoke in favor of getting rid of all tax credits for electric vehicles.

The Tesla CEO also shared his views on the proper role of government during his appearance as well.

“I think the role of the government should be that of a referee but not a player on the field. Government should not impede progress.”

Musk has been a vocal opponent of a new proposal that would give additional tax credits to electric vehicle purchases that were made from union workers.

Related Link: Can Tesla Bot Help With Labor Shortage? Here's What Elon Musk Said 

Buttigieg Responds: Buttigieg defended the Build Back Better Act, which awards an additional $4,500 incentive to electric vehicles that are produced in a union factory.

Buttigieg called the move to electric vehicles inevitable, but added that the government can provide help in facilitating the shift.

“I think it’s very important to fund EV charging stations and to also make sure what’s in the next Build Back Better Act to bide down the cost of electric vehicles,” Buttigieg said.

The government’s role isn’t to make the shift to electric vehicles happen, Buttigieg argued, but rather help with the transition.

“The market is going electric already. That’s gonna happen.”

Buttigieg outlined three ways the government is encouraging the electric vehicle shift. The government is helping with the speed of the transition, making the cost affordable for consumers and creating good-paying jobs.

“These are things that don’t happen on their own. They require policy attention and that’s part of our focus both in the charging network that is supported out of the infrastructure bill that the president signed and the tax credits that will make these vehicles more affordable, that are proposed in Build Back Better.”

Price Action: TSLA shares are up 1.14% to $1,063.76 on Wednesday.