Republican Presidential candidate Donald Trump said over the weekend that he is now for electric cars, thanks to Tesla Inc. TSLA CEO Elon Musk‘s endorsement.
What Happened: In his first joint rally with his vice presidential pick JD Vance in Atlanta on Saturday, Trump alleged that Kamala Harris, the presumptive nominee of the Democratic Party, wants to”get rid” of gas cars and replace them with EVs.
This, Trump said, is not a great choice given the low range of electric cars, coupled with their high price point and heavy reliance on China for manufacturing.
“…other than that, they’re fantastic and I’m for electric cars. I have to be, you know, because Elon endorsed me very strongly. So I have no choice,” Trump said, softening his criticism for EVs.
However, EVs can only serve as a small slice of the entire auto market with choices for customers to opt for hybrids and gas-powered vehicles as well, Trump said. The Democratic party, he alleged, wants to go all-electric.
Several figures from the Democratic Party, including President Joe Biden and Transporation Secretary Pete Buttigieg have previously refuted this claim from Republicans, reiterating that their party is not mandating EVs but only supporting the industry in a bid to offer the choice for customers to buy an EV if they want to.
Why It Matters: Musk officially endorsed Republican candidate Donald Trump in July after a shooting incident at a rally in Pennsylvania. The former President is seeking the elimination of subsidies for electric vehicles.
However, Musk said during the company’s second-quarter earnings in late July that the impact of the elimination of subsidies would only be slight for Tesla but devastating for its competitors. The elimination of EV subsidies would probably help Tesla in the long term, he added.
Last week, Musk told Lex Fridman in a podcast published on Friday, that he discussed the idea of a “government deficiency commission” with Trump in case the former President reclaims the White House. The CEO also expressed his willingness to be a part of it.
While Musk did not detail the purpose of the commission, he hinted that it might be aimed at removing an "accumulation of laws and regulations" that prevents key development projects.
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