Potentially, Trump contemplated including Musk in his presidential cabinet.
Trump, the US presidential nominee, admires Musk, the Tesla CEO, and even ponders the possibility of appointing him to his administration or as an advisor. Yet, Trump might not be thrilled about Musk's stance on electric vehicles, given his reservations about tax incentives for electric cars. Trump told Reuters, "He's sharp as a tack. I'd do it if he wanted to. He's a genius." Musk backed Trump in his presidential bid last month. Tesla didn't immediately respond to a request for comment.
Musk is a prominent financier for Trump, with the "Wall Street Journal" reporting that he intends to contribute $45 million (approximately $41 million) to Trump's re-election campaign each month. Musk voiced his support for Trump on the networking site X.
If re-elected, Trump hinted at reassessing the $7,500 tax credit for purchasing electric vehicles, which would also directly impact Tesla. Trump expressed concerns about tax credits and incentives in general. He acknowledged his fondness for electric cars but also champions gasoline and hybrid vehicles. However, he perceived a smaller market for electric cars due to cost and range-related challenges.
Trump also intends to overhaul the regulations intended to stimulate the production of electric and hybrid vehicles, which were put in place by the Biden administration. Furthermore, Trump announced measures to make it more challenging to export vehicles manufactured in Mexico for the US market using new tariffs. All German automakers, such as Volkswagen and its subsidiaries, Mercedes, and BMW, manufacture cars in Mexico.
Initially, Tesla considered building a factory in Mexico. However, after Trump announced he would escalate tariffs on Mexican-made cars, Musk stated he'd defer a decision until after the election. "Trump promised to raise the tariffs on cars produced in Mexico," Musk explained. "So, it isn't logical to invest heavily in Mexico right now. Let's see how things develop politically."
Musk's significant financial support for Trump's re-election campaign is evident, as he pledged to contribute $45 million per month. Despite Trump's potential reassessment of electric vehicle tax credits, Musk remains confident, mentioning his deferment of a Tesla factory decision in Mexico until after the election.
