Tesla just posted its strong third-quarter earnings, however, the talk of the town has been on CEO Elon Musk's political tango with Republican presidential candidate Donald Trump. The two are at odds over electric vehicles (EVs), AI-driven automation, and climate change, raising concerns about potential conflicts if Trump wins and Musk becomes more politically involved.
Despite Musk's public support, Trump recently dismissed EV funding as a "green new scam," though he admits backing EVs due to Musk's influence. Trump's stance on EVs and his opposition to the Inflation Reduction Act (IRA) could seriously shake up the US EV, renewable energy, and energy storage sectors in a scenario where he wins.
Musk, confident that Tesla can weather the IRA repeal, noted it could devastate competitors. Beyond EVs, Tesla's charging stations and fast-growing renewable energy units could also be impacted.
Rumors swirl that Trump might appoint Musk as "Secretary of Cost-Cutting," starting with slashing funding for the National Highway Traffic Safety Administration (NHTSA). However, critics are wary of applying Musk's aggressive supply chain strategies to national governance.
Meanwhile, NHTSA is investigating Tesla's Full Self-Driving (FSD) system after multiple crash reports. Musk's political involvement may affect this probe and accelerate the launch of autonomous taxis like Cybercab, though AI and autonomous driving could conflict with Trump's job-focused agenda.
Some observers believe Trump's presidential bid aims to halt federal investigations, while Musk's support could stem from his clashes with the SEC and FCC, as well as dealings between SpaceX, NASA, and the Defense Department.
The Musk-Trump alliance underscores the broader EV divide between Republicans and Democrats, with each side representing opposing views within the supply chain. In Michigan, 88% of EV-related political ads oppose the technology, with local lawmakers arguing for domestic production over reliance on China.
