As long as he is persona non grata in the Trump administration, Mr. Musk, the chief executive of Tesla, will struggle to persuade Republicans not to gut climate policies worth billions of dollars to the electric car and battery company.
Mr. Musk may also lose sway over federal regulators who could make or break his plans to deploy driverless taxis, which he has described as the future of the company.
The company’s share price plummeted 14 percent on Thursday, its biggest one-day decline, after Mr. Musk and Mr. Trump began insulting each other on social media.
There was always a disconnect between Mr. Musk and his Republican allies on electric cars.
But the Trump administration and Republicans in Congress are also trying to kill regulations that are especially beneficial to Tesla.
Tesla may suffer as a result of Elon Musk’s acrimonious feud with President Trump.
As long as he remains a persona non grata in the Trump administration, Tesla CEO Elon Musk will have a hard time convincing Republicans not to sabotage climate policies that are worth billions of dollars to the battery and electric vehicle manufacturer.
Mr. Additionally, Musk might lose influence over federal regulators who have the power to approve or disapprove his plans to implement driverless taxis, which he has referred to as the company’s future.
Tesla has already seen sharp drops in both sales and profits. The company’s stock price fell 14% on Thursday, the most in a single day, as Mr. Trump and Mr. Musk started disparaging one another on social media. Possibly in anticipation of a truce between the men or because investors believed the stock was now a good deal following the day’s decline, the stock recovered somewhat on Friday, rising by almost 4%.
When it came to electric vehicles, Mr. Musk and his Republican allies were never in agreement. The domestic policy bill, which was approved by House Republicans and is currently being considered by the Senate, will negatively impact the US electric vehicle market, of which Tesla is by far the biggest producer.
The bill would remove up to $7,500 in tax credits for electric vehicle purchases. Financial support for EV charging stations would be discontinued, and subsidies for lithium refineries and battery factories would be swiftly phased out. Environmental organizations claim the $250 annual fee the bill imposes on owners of electric vehicles is punitive.
All automakers who sell electric cars would suffer from those policies. However, Republicans in Congress and the Trump administration are also attempting to repeal laws that are particularly advantageous to Tesla. These regulations enable Tesla to offer clean air credits to other automakers who don’t adhere to environmental regulations.
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