Multi-hyphenate CEO Elon Musk has thrown his full weight behind Trump in the upcoming presidential election.
And as far as the former president’s recently announced running mate Republican senator JD Vance is concerned, the Tesla CEO is happy to welcome him with open arms.
“Congratulations JD Vance!” Musk tweeted. “Excellent decision by Donald Trump.”
But there’s just one problem: by endorsing Vance, Musk is acting directly against the interests of Tesla shareholders, as Electrek points out. That’s because Vance has thrown his full weight against electric vehicles in the US and even unveiled legislation late last year that would eliminate EV subsidies and provide up to $7,500 for new gas or diesel-powered vehicles instead, a wild reversal that flies directly in the face of Tesla’s mission statement.
In short, Musk has turned his sights against the future of EVs in the US. But why he’s chosen to support Trump and his running mate remains as murky as ever. Is he looking to score political points to ensure he gets a seat behind closed doors? Is it another tantrum? Is he bitter that EV sales are declining and ready to jump ship?
Of course, it’s not the first time Musk has acted against the interests of Tesla’s shareholders. He’s alienated its consumer base by going on racist tirades, while his political standings have sharply veered to the right.
As Bloomberg revealed last week, Musk misled investors about not donating to either presidential candidate. Musk donated to a super political action committee that’s supporting Trump’s campaign, despite the entrepreneur tweeting in March that he’s “not donating money to either candidate for US president” — a considerable change of heart.
But following the aftermath of the assassination attempt on Saturday, Musk has come out fully swinging.
“I fully endorse President Trump and hope for his rapid recovery,” he tweeted.
Musk is also throwing his weight behind an ever-powerful oil and gas lobby and active attempts to slow or even reverse the world’s adoption of EVs.
Meanwhile, Musk’s announcement threw shareholders for a loop, with Tesla shares first dipping and then rebounding over the last five days. Shares are now up an astonishing 35 percent over the last month, indicating widespread optimism.
But now that Musk is willing to throw the future of renewable transport under the bus, it’s as unclear as ever what will happen to Tesla next.
On X-formerly-Twitter, Musk called for the removal of all subsidies “from all industries,” which according to him “will only help Tesla,” highlighting his stance on the free market and distaste for government intervention.
One way to interpret these comments suggests that Musk is trying to shake off the increasingly growing competition. In 2021, he whined about Tesla vehicles no longer being eligible for a $7,500 tax credit, allowing its competitors to get a leg up.
At the time, he argued that all subsidies for “oil and gas” should also be eliminated, essentially calling for a more level playing field.
But now that he’s thrown his full weight behind Trump and Vance, Musk’s stance is taking on a different tack. Trump has repeatedly gone on bizarre rants about how he dislikes electric cars, and Vance is actively calling for a subsidy for gas-powered vehicles.
In other words, Musk is now acting like an opponent of the electric car — a bewildering self-own that could have ripple effects across the industry.
Is the mercurial CEO afraid of an influx of cheaper and better-built EVs, or is there more to his ever-mistifying changes of heart?
As always, it’s a fool’s errand to get overanalyze Musk’s current emotional state. But judging by Tesla’s shares rallying over the last couple of weeks, investors are along for the ride — at least for now.
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