Trump intends to incorporate Musk into his cabinet - Red Pencil's suggestion for E-AutosDonald
Trump, the sharp-minded US presidential hopeful, reckons highly of tech magnate Elon Musk. He even contemplates Musk serving in his ministry or consulting role, the Republican stated. However, Musk might not be thrilled with Trump's perspective on electric cars.
Trump is considering tapping Musk as a cabinet member or advisor while doubting the necessity of tax breaks for electric vehicles. In an interview with Reuters, Trump praised Musk, saying, "He's really sharp. If he wanted to do it, I would certainly do it. He's brilliant." Musk gave his support to Trump as the US president in recent weeks. Tesla has yet to comment on the matter.
Musk is an ardent supporter of Trump, as per the "Wall Street Journal," who plans to donate $45 million (approximately $41 million) to Trump's campaign fund every month. However, Musk refuted the claim, labeling it as "preposterous." In a tweet, the billionaire confirmed his support for Trump.
Moreover, if re-elected, Trump is inclined to abolish the $7,500 tax reduction for purchasing electric vehicles, affecting Tesla as well. "Incentives and tax cuts usually aren't the best idea," Trump said in a statement. Trump is a staunch advocate for electric cars but also advocates for gasoline and hybrid vehicles. Despite his love for electric cars, he believes the market for them is relatively small due to cost and range constraints.
Trump also intends to roll back the regulatory measures enacted by Biden's administration to boost the production of electric and hybrid vehicles. He further announced plans to raise difficulties for exporting vehicles manufactured in Mexico to the US market through new tariffs. All German manufacturers, including Volkswagen, Mercedes, and BMW, manufacture vehicles in Mexico.
Tesla initially proposed to establish a factory in Mexico. However, in late July, Musk announced that he would decide on constructing a factory in the US after the election. "Trump mentioned he'd impose higher tariffs on cars made in Mexico," Musk explained. "So, it's unwise to invest heavily in Mexico. I'll observe how the political landscape evolves."
Trump continues to consider Musk as a potential cabinet member or advisor, given his admiration for the tech entrepreneur's sharp mind. Despite Musk's support for electric vehicles, Trump expresses doubts about the need for tax breaks for these vehicles, potentially affecting Tesla's sales.
