By the SEMA Washington, D.C., office
Former President Donald Trump on the campaign trail has vocally denounced electric vehicle (EV) mandates, going so far as to declare a "Day 1 halt" to any such policy by his administration. And while prominent leaders in the business world are no strangers to politics, several eyebrows nonetheless were raised recently when Tesla CEO Elon Musk threw his support behind Trump, giving a full-throated endorsement of the former president's campaign. Musk, after all, is the leader of the world's most prominent EV manufacturer. Here's what's behind their burgeoning partnership, compiled by the SEMA Washington, D.C., office.
Trump says he's actually not anti-EV. In a July 26 interview on FOX News' morning show, the former president clarified his position on EVs, stating that he believes in consumer choice in the market. "You want a gasoline-propelled car or [you] want maybe a hybrid," Trump told the "Fox & Friends" news program. "You want to have a choice. And that includes electric."
Regulatory and tax concerns outweigh EV policy. Musk might be banking on what a second Trump presidency could mean to the federal regulatory environment. Tesla and its fleet of EVs are just one piece of Musk's portfolio, which also includes Space X, the Boring Company, and social media company X (formerly known as Twitter). Trump has promised that his administration will provide businesses with less regulatory oversight, along with a lower corporate tax rate.
Tesla could stand to benefit from no EV mandates. Tesla holds a significant competitive edge in the EV market right now, with a huge lead in manufacturing and production infrastructure over legacy car makers. In the absence of an EV mandate, such a lead could prove to be a financial windfall for Tesla, with fewer incentives available to prop up efforts to establish footholds in the market by other, nascent EV manufacturers.
The SEMA Public and Government Affairs team is advocating for policy issues that are core to SEMA's mission by ensuring policymakers hear a clear, strong, and unified voice representing not only SEMA members, but also the specialty equipment industry and auto enthusiasts. Get involved and contact the SEMA Washington, D.C., office at sema.org/advocacy.