Now, the CEO of Tesla, Elon Musk is going through a raw back-and-forth tussle on social media with former President Donald Trump. The ongoing war is primarily focused on one Trump-supported huge spending bill. This new confrontation follows on Musk’s somewhat embarrassing resignation from his post as government efficiency czar during the Trump administration. He stepped into that role to promote cost-effectiveness in the overall government.
The dispute went from 0 to 60 in seconds. In keeping with the meme theme, Trump proposed using the new Department of Government Efficiency, or Doge, to go after Musk’s companies. Trump makes the case that Musk is against the spending ($200 billion) bill. He thinks this is because of its provisions that eviscerate all incentives to purchase EVs. Musk is one of the world’s most prominent advocates for renewable energy. His companies utilize these same incentives to help stimulate sales and adoption of electric vehicles.
In a recent statement, Trump indicated that Musk’s firms could receive substantial subsidies, stating that “Elon may get more subsidy than any human being in history, by far.” It’s not surprising then that Trump has floated the notion of eliminating these subsidies. He’s gone so far as to call for deporting Musk because their ideologies on government spending diverge. This tension is emblematic of the evolution of their relationship, which has moved from a productive partnership to one marked by litigation and opposition.
Musk’s companies, especially Tesla, have gotten a free pass on what they call key performance indicators or KPIs — the numbers that investors obsessively watch. Between April and June of this year, Tesla delivered 384,000 vehicles—a number representing the company’s second straight quarterly drop. This fall has raised the fears of some investors. Other analysts go as far as to say that these numbers are merely the start of a long-term trend and nothing to panic about.
Musk’s influence on government initiatives has been under the spotlight recently. Critics attribute the decline in Tesla’s quarterly deliveries partly to his focus on government efficiency rather than solely on business operations. At the same time, uncertainty about the U.S. EV tax credit might be affecting consumer decision-making in the short term. Many buyers may rush to purchase electric vehicles before potential changes to the tax credit take effect, which could temporarily boost sales for Musk’s company.
As this public spat unfolds, it remains to be seen how it will impact Tesla’s future performance and its relationship with federal policies. The dance between government carrots and corporate sticks seems to be the way forward in sculpting the future electric vehicle market.