Tesla CEO Musk expressed his appreciation for Israeli Prime Minister Benjamin Netanyahu’s speech to a joint session of Congress at the U.S. Capitol on Wednesday. Musk supported former President Trump’s campaign but said he would not donate $45 million a month to the cause.
Saul Loeb/AFP via Getty Images
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Saul Loeb/AFP via Getty Images
Tesla CEO Elon Musk’s strong endorsement of former President Donald Trump in the deeply polarizing 2024 presidential election raises many questions, including whether the move will prompt current or potential Electric car buyers shun the car brand.
The speculation comes amid a period of transformation for the broader electric vehicle industry and Tesla in particular. On Tuesday, the company reported a 45% drop in quarterly profit compared with the same period in 2023, saying it was “currently in between two major growth waves.”
Tesla said in its earnings report that it has enough cash and resources to execute its plans “during this uncertain time.”
Other automakers’ electric vehicle lineups have also struggled financially. But in Tesla’s case, Musk’s endorsement of a Republican candidate who opposes lucrative federal electric vehicle tax credits has fueled speculation about the company’s overall strategy and whether it will be under the influence of its CEO Damage to political sentiment.
What did Musk do?
Musk declareAfter the assassination in Pennsylvania on July 13, “I fully support President Trump.” He also has ties to pro-Trump super PACs. On Sunday, Trump told a crowd at a rally in Michigan that he had recently spoken with Musk.
“Elon backed me the other day, and I read, I didn’t even know that. He didn’t even tell me about it, but he was giving me $45 million a month.
But when Musk was recently asked about his support for the former president, he told a different story.
“What’s being reported in the media is simply not true,” Musk said in an interview with psychologist and expert Jordan Peterson published Monday. “I’m not giving $45 million a month to Trump.”
“What I did was create a political action committee, a super PAC,” called American PAC, he said, adding that the money would go to “the Democratic and Republican sides.”
“This is not a super partisan political action committee,” Musk said. “Our purpose is to promote the principles that made America great in the first place. For example, I wouldn’t say MAGA – Make America Great Again. I think America is great. I prefer MAG – Make America Great Again.”
Recent reports have linked the super PAC to politicians in the inner circle of Florida Gov. Ron DeSantis (who had been considered a potential favorite among Musk’s 2024 candidates).
Musk said the goal of the super PAC is to support elite management.
“Your success depends on your hard work and your skills and nothing else,” he said. Another goal, he said, is to promote “freedom to operate, which means as little government interference as possible.”
Musk’s endorsement of Trump follows months of controversial comments and criticism of Democrats and the Biden administration. he Noted in 2021For example, the White House appeared to snub him and Tesla when it hosted an event to set ambitious U.S. sales targets for zero-emission vehicles. In May 2022, Musk said on Twitter that he would vote for the Republican Party for the first time.
Trump has often derided the push for more electric vehicles. His running mate, Ohio Senator J.D. Vance, also holds the same view. Last fall, Vance introduced legislation in Congress to repeal four different electric vehicle tax credits and instead “provide subsidies of up to $7,500 for new gasoline or diesel-powered vehicles made in the United States.” In an op-ed, Vance urged United Automobile workers, who were on strike at the time, to use their influence to end subsidies to the U.S. electric vehicle industry — which he called a “failed experiment.”
What are EV enthusiasts, fans and customers saying?
On Tesla owner forums such as Tesla Motors Club and Tesla Owners Online, reactions to Musk’s leaning to the political right have ranged from dismay at his support for Trump, a frequent critic of electric vehicle credits, to disbelief. Musk is playing strategic political games to protect Tesla.
For members of the Kalamazoo Electric Vehicle Association of Michigan, there’s a long-standing unofficial rule: Avoid politics and focus on a common goal — promoting electric vehicle adoption, said the group’s leader, Western Michigan University Physicist Paul Pancella said.
Pancella told NPR that the rule was widely followed. It would be easy for him to “give Musk his due as an entrepreneur, a businessman, and even a visionary,” no matter what he says on politics or other issues.
“I do worry that he’s not helping electric vehicles further penetrate the automotive market,” Pancella said of Musk’s public statements in recent years. “Overall, Tesla-brand vehicles offer high value relative to other electric vehicles and vehicles, and are arguably the best choice for people who want to travel long distances frequently.”
According to the latest data from CivicScience, this concern is not unfounded. The consumer research firm cited data from mid-July showing that environmentally conscious consumers, or Democrats, viewed Musk and Tesla less favorably than earlier this year.
“These data highlight the real challenges facing Tesla,” CivicScience founder and CEO John Dick said in a statement to NPR. “Given concerns about climate change and fossil fuels, EV buyers are Politically, he leans left-of-centre.
Other sources of influence are more obvious. Rep. Aimee Berger-Givallo, D-Conn., reportedly said last week that Democrats were less likely to support legislation that would benefit Tesla since Musk “began aligning himself with extremely authoritarian values.” State legislation.
How is Tesla doing?
The company announced on Tuesday that its profit in the second quarter of 2024 fell 45% compared with the same period last year, and its recent quarterly net profit was US$1.48 billion. In the automotive business, total revenue decreased slightly by 7% compared with the second quarter of last year.
The results suggest that Tesla is feeling the same downturn as the rest of the EV industry, but there are some signs of forward momentum. On the one hand, total revenue rose to $25.5 billion: Tesla said it achieved “a record quarterly revenue despite a difficult operating environment” including high interest rates.
In contrast, the company attributed the profit decline to factors such as market adjustments and investments in long-term plans. Tesla said falling vehicle prices and rising operating costs were “primarily driven by its artificial intelligence initiatives.”
Record regulatory credit revenue boosted Tesla’s profits, with the company receiving $890 million from sales to other automakers to compensate for its vehicles not meeting emissions requirements. The company also reported rapid growth in its energy generation and storage business.
As for new and planned vehicles, the automaker said its Cybertruck production “more than tripled from the previous quarter and is on track to be profitable by the end of the year.” The company said it expects to produce electric semitrailers by the end of next year.
Tesla also has high hopes for its long-promised Robotaxi vehicles, saying they have “enormous potential value.” According to reports, in a conference call after the release of the earnings report, Musk said that Robotaxi will be unveiled on October 10 Investors Business News.
