Once on opposite sides, Elon Musk and Donald Trump are now working together as the 2024 presidential election draws near. According to CNBC, while perhaps expected by many, their partnership is still raising important questions about what's driving these two powerful figures to join forces and how it could impact the future of the electric vehicle (EV) industry and beyond.
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Musk, the CEO of Tesla, and Trump, the former president, have a history of disagreements, especially on issues like climate change and electric vehicles. Trump has been very critical of EVs and has many times downplayed the importance of addressing climate change. On the other hand, Musk has built his career on promoting clean energy and sustainability, although his excessive private jet use and penchant for launching rockets into space paint a different picture.
Even with these differences, Musk recently decided to back Trump for the 2024 election, showing that their relationship is changing. This decision has led people to wonder what benefits they might gain from working together and how it could impact politics and the economy.
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As the head of companies like Tesla, SpaceX, and X (formerly Twitter), Musk has a lot of business interests that could do well with the right president in office. For example, if Trump becomes president again, SpaceX might get more government contracts, especially since it competes with big defense companies like Boeing. Plus, Tesla could benefit if Trump tariffs Chinese goods since China is one of Tesla's main competitors in the U.S. market.
There has been some confusion about how much money Musk contributes to Trump's campaign. "I love Elon Musk … we have to make life good for us smart people. And he's as smart as you get," Trump said. "He gives me $45 million a month! C'mon. Not $45 million. He gives me $45 million a month."
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So, Trump claimed that Musk was donating $45 million a month, but Musk quickly denied this, clarifying that his donations are much smaller and are funneled through a political action committee (PAC). "I'm not donating $45 million a month to Trump," Musk told podcaster Jordan Peterson.
Regardless of the exact financial contributions, Musk is leveraging his influence on social media to promote Trump and their shared political views, including opposition to progressive issues like critical race theory and transgender rights, which resonate with Trump's base.
Impact On The EV Revolution
Musk and Trump working together raises questions about the future of the electric vehicle industry, especially since Trump has usually been skeptical of EVs and prefers traditional fossil fuels.
In his words, “They don’t go far. They cost a fortune,” “We’re going to end your mandate on [electric] cars,” and “These people are crazy. They want to make all-electric trucks, the big 18-wheelers,” among other things.
However, with Musk's backing, there's a possibility that Trump might adopt a more favorable stance on electric cars. In fact, we already see his tune changing: "I love Elon. He's great," he said. He endorsed me and gave me great endorsements and everything else, but not everybody has to have an electric car."
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We can now see him tell his audience, "I'm for electric cars." "I have to be, you know because Elon strongly endorsed me. So, I have no choice."
On the flip side, if Trump's policies were to slow down the progress of EVs and clean energy, Musk's support for him could potentially harm the advancements Musk has worked so hard to achieve.
As Musk and Trump join their efforts, the potential effects on the EV industry and broader technology sectors remain uncertain.
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