Latest news with #EVsubsidies
Free Malaysia Today
02-07-2025
- Automotive
- Free Malaysia Today
Trump escalates feud with Musk, threatens Tesla, SpaceX support
Elon Musk, a major Donald Trump donor, renewed criticism of a US bill slashing EV subsidies that long benefited Tesla's dominance. (AP pic) WASHINGTON : US President Donald Trump on Tuesday threatened to cut off the billions of dollars in subsidies that Elon Musk's companies receive from the federal government, in an escalation of the war of words between the president and the world's richest man, one-time allies who have since fallen out. The feud reignited on Monday when Musk, who spent hundreds of millions on Trump's re-election, renewed his criticism of Trump's tax-cut and spending bill, which would eliminate subsidies for electric vehicle purchases that have benefited Tesla, the leading US EV maker. That bill passed the senate by a narrow margin midday Tuesday. 'He's upset that he's losing his EV mandate and … he's very upset about things but he can lose a lot more than that,' Trump told reporters at the White House on Tuesday. Though Musk has often said government subsidies should be eliminated, Tesla has historically benefited from billions of dollars in tax credits and other policy benefits because of its business in clean transportation and renewable energy. The Trump administration has control over many of those programmes, some of which are targeted in the tax bill, including a US$7,500 consumer tax credit that has made buying or leasing EVs more attractive for consumers. Tesla shares dropped more than 5% Tuesday. The Tesla CEO renewed threats to start a new political party and spend money to unseat lawmakers who support the tax bill, despite campaigning on limiting government spending. Republicans have expressed concern that Musk's on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. Treasury secretary Scott Bessent pushed back on Musk's criticism that the bill would balloon the deficit, saying, 'I'll take care of' the country's finances. Musk spearheaded the Department of Government Efficiency (DOGE), aimed at cutting government spending, before he pulled back his involvement in late May. Trump on Truth Social on Tuesday suggested Musk might receive more subsidies 'than any human being in history, by far,' adding: 'No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.' Trump later doubled down, telling reporters with a smile, 'DOGE is the monster that might have to go back and eat Elon.' In response to Trump's threats, Musk said on his own social media platform X, 'I am literally saying CUT IT ALL. Now.' He later added that he could escalate the exchange with Trump but said, 'I will refrain for now.' Challenges to Tesla The feud could create new challenges for Musk's business empire, particularly as the electric automaker – his primary source of wealth – bets heavily on the success of its robotaxi programme currently being tested in Austin, Texas. The speed of Tesla's robotaxi expansion depends heavily on state and federal regulation of self-driving vehicles. 'The substance of Tesla's valuation right now is based on progress towards autonomy. I don't think anything is going to happen on that front, but that is the risk,' said Gene Munster, managing partner at Tesla investor Deepwater Asset Management. Analysts expect another rough quarter when the EV maker reports second-quarter delivery figures on Wednesday. Sales in major European markets were mixed, data showed Tuesday, as Musk's embrace of hard-right politics has alienated potential buyers in several markets worldwide. The elimination of the EV credit could hit Tesla's earnings by as much as US$1.2 billion, about 17% of its 2024 operating income, JP Morgan analysts estimated earlier this year. The Electrification Coalition, an EV advocacy group, on Tuesday urged the US house to revise the senate bill. Shares of smaller EV players Rivian and Lucid Group lost 2% and 3.8%, respectively, on Tuesday. Gary Black, a longtime Tesla investor who manages money for the Future Fund LLC, sold his shares recently as car sales declined. He told Reuters he is considering when to reinvest and that eliminating electric vehicle credits would harm Tesla. In a separate post on X, Black said: 'Not sure why @elonmusk didn't see this coming as a result of him speaking out against passage of President Trump's big beautiful bill.' The US transportation department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about US$22 billion in federal contracts. Tesla also gets regulatory credits for selling electric vehicles, and has reaped nearly US$11 billion by selling those credits to other automakers who are unable to comply with increasingly strict vehicle emissions rules. Without those sales, the company would have posted a first-quarter loss in April. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about US$3 trillion to the U.S. debt. Asked if he was going to deport Musk, a naturalised US citizen, Trump told reporters as he left the White House on Tuesday: 'I don't know. We'll have to take a look.'
LBCI
01-07-2025
- Automotive
- LBCI
Trump escalates feud with Musk, threatens Tesla, SpaceX support
U.S. President Donald Trump on Tuesday threatened to cut off the billions of dollars in subsidies that Elon Musk's companies receive from the federal government, in an escalation of the war of words between the president and the world's richest man, one-time allies who have since fallen out. The feud reignited on Monday when Musk, who spent hundreds of millions on Trump's re-election, renewed his criticism of Trump's tax-cut and spending bill, which would eliminate subsidies for electric vehicle purchases that have benefited Tesla, the leading U.S. EV maker. "He's upset that he's losing his EV mandate and … he's very upset about things but he can lose a lot more than that," Trump told reporters at the White House on Tuesday. Reuters
Yahoo
23-06-2025
- Automotive
- Yahoo
Tesla Whiplash: Musk's Trump Tirade Tanked Stock, Recovery Hinted at Damage Control
On Thursday, June 5, Tesla (NASDAQ:TSLA) stock took a nosedive, dropping 14% and erasing over $150 billion in market value. The sharp decline was triggered by a public spat between TSLA CEO Elon Musk and President Trump. Musk publicly criticized the President's proposed tax and spending legislation, cheekily called the "One Big Beautiful Bill Act." Among other things, the bill has implications for EV subsidies, which are vital to Tesla's business model. The bill would scale back numerous tax credits for the purchase and production of EVs, which also includes the $7,500 consumer credit. The bill would also eliminate tailpipe-emission rules that incentivize car manufacturers to electrify their up and upcoming models over the next decade. Musk, in addition to concerns over EV tax credits and personal attacks on the POTUS, also expressed concerns over the bill's "potential to increase the national deficit by $2.5 trillion over the next 10 years." The white house, on the other hand, has disputed the claim. POTUS, in response, threatened to cut off federal contracts with Musk's companies, including Tesla and SpaceX. "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was always surprised that Biden didn't do it!" However, by the next day, the stock rebounded over 5%, and recovered some of the lost ground. The recovery was due to the reports suggesting a potential de-escalation between Musk and Trump, although the White House later denied any scheduled call. Despite the rebound, analysts remain cautious and noted that the feud could have long-term implications for Musk's companies with the federal government, especially regarding regulatory approvals for innovations like driverless robotaxis. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Free Malaysia Today
10-06-2025
- Automotive
- Free Malaysia Today
China extends anti-dumping probe into EU pork imports
Beijing launched the probe into imported European pork amid Brussels' scrutiny of Chinese state subsidies for the electric-vehicle industry. (EPA Images pic) BEIJING : China said today it was extending an anti-dumping investigation into pork products imported from the EU, one of several trade pressure points between the two economic giants. Beijing launched the probe last year amid Brussels' scrutiny of Chinese state subsidies for the electric-vehicle (EV) industry. The Chinese commerce ministry said it would prolong the inquiry for six months 'in view of the complexity of this case'. The investigation period will now expire on Dec 16, the ministry said in a brief statement. The trade spat erupted last summer when the EU moved towards imposing hefty tariffs on EVs imported from China, arguing that Beijing's subsidies were unfairly undercutting European competitors. Beijing denied that claim and announced what were widely seen as retaliatory probes into imported European pork, brandy and dairy products. The EU imposed extra import taxes of up to 35% on Chinese EV imports last October. Beijing later lodged a complaint with the World Trade Organization, which said in April that it would set up an expert panel to assess the EU's decision. China and the EU will host a summit next month marking 50 years since Beijing and Brussels established diplomatic ties. The two sides will discuss setting minimum prices for Chinese EVs in Europe and opening a 'green channel' for rare earth exports to the 27-nation bloc, according to official statements.
