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Tesla's Musk says Biden's electric vehicle bill should not pass Congress

Stock MarketsDec 07, 2021 02:32PM ET
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© Reuters. FILE PHOTO: Tesla Inc CEO Elon Musk walks next to a screen showing an image of Tesla Model 3 car during an opening ceremony for Tesla China-made Model Y program in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo

SAN FRANCISCO (Reuters) -Tesla Inc Chief Executive Officer Elon Musk said on Monday that Congress should not approve the Biden administration's bill to boost subsidies for electric vehicles (EVs), saying the proposal would worsen the U.S. budget deficit.

The billionaire entrepreneur is escalating criticism about the administration and Democrats for a proposal to give union-made, U.S.-built electric vehicles an additional $4,500 tax incentive. Tesla (NASDAQ:TSLA) and foreign automakers do not have unions at their U.S. factories.

"Honestly, it might be better if the bill doesn't pass," Musk said at the WSJ CEO Council Summit.

"I'm literally saying get rid of all subsidies," he said, adding that the government should "get out of the way and not impede progress."

Tesla has benefited from a variety of government aid and programs.

Since 2019, Tesla generated more than $3 billion revenue from selling regulatory credits to other automakers falling short of meeting government emissions standards. The rise in the income helped Tesla start making annual profits last year.

The company acquired its Fremont, Calif., assembly plant from the government as it restructured General Motors (NYSE:GM). Tesla also received a $465 million low-cost loan from the Department of Energy, which it repaid early.

Tesla also benefited from a $7,500-per-vehicle federal tax credit. That credit applied in full to the first 200,000 Teslas sold, and then phased out.

In his comments on Monday, Musk also reiterated opposition to a proposal by Democrats to tax billionaires.

"It does not make sense to take the job of capital allocation away from people who have demonstrated great skill ... and give it to, you know, an entity that has demonstrated very poor skill in capital allocation, which is the government."

Musk said his brain-chip startup, Neuralink, hopes to begin human trials next year pending approval from the U.S. Food and Drug Administration.

"I think we have a chance with Neuralink of being able to restore full body functionality to someone who has a spinal cord injury," he said.

Tesla's Musk says Biden's electric vehicle bill should not pass Congress
 

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Comments (12)
Mart Bab
Rubberduck1973 Dec 07, 2021 6:55AM ET
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Hehehe. The company that lives on subsidies says no subsidies for others. What a joke.
Trevor Roberts
LimitUp Dec 07, 2021 6:32AM ET
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I like this guy more and more, finally a relevant CEO and brilliant mind that didnt fall for the communist lies.
Michael Angelo
Michael Angelo Dec 07, 2021 6:31AM ET
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After getting subsides now don't want others to compete with hin. Very patriotic... c'mon cheater.
Saroop Calvete
Saroop Calvete Dec 07, 2021 6:31AM ET
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The previous subsidies at least were available to all car makers
Raymond Pasillas
Raymond Pasillas Dec 07, 2021 6:00AM ET
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Everyone wants to steal your money in this world. Legally and illegally.
Hunt Richardson
Hunt Richardson Dec 07, 2021 5:43AM ET
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he must've read Ayn Rand's Atlas Shrugged
Shogun Sherchan
Shogun Sherchan Dec 07, 2021 12:03AM ET
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Tesla has been getting lots of subsidy… give all the money back… you talk the talk…how bout walk the walk..
bert prince
bert prince Dec 07, 2021 12:03AM ET
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and complaining others will get subsudies
Ron Love
Ron Love Dec 07, 2021 12:03AM ET
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Government subsidies go to the taxpayer, not Tesla. Tesla got a loan from the US government and repaid it. Tesla also refused a $1.1 billion subsidy from the German government.
Emmanuel Merali
Emmanuel Merali Dec 07, 2021 12:03AM ET
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Actually, they paid the money back…
Mart Bab
Rubberduck1973 Dec 07, 2021 12:03AM ET
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Ron Love  thanks for your contribution to fake news. You may want to read a bit more about how Tesla can even exist as a company.
Shogun Sherchan
Shogun Sherchan Dec 07, 2021 12:02AM ET
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Tesla has been getting lots of subsidy… give all the money back… you talk the talk…how bout walk the walk..
Craig Wilcox
Craig Wilcox Dec 07, 2021 12:02AM ET
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uh, I believe they have already walked the walk. sheetbag dems need to step aside and let real businessmen and women run the country.
William Smith
William Smith Dec 06, 2021 11:03PM ET
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Union made cars are such a PO S that they need subsidies to compete.
Shogun Sherchan
Shogun Sherchan Dec 06, 2021 11:03PM ET
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You realize tesla car are subsidized
Craig Wilcox
Craig Wilcox Dec 06, 2021 11:03PM ET
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Shogun Sherchan non union, very well ran. Musk is doing what government cannot.
Erski Gumby
SB20 Dec 06, 2021 11:03PM ET
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Shogun Sherchan Ain’t the brightest of the bunch, huh?
leehiung chong
leehiung chong Dec 06, 2021 10:50PM ET
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worried subsidies will give other EV producers level playing field and lose his first move advantage ?
andrew cando
andrew cando Dec 06, 2021 10:50PM ET
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i support elon's statement. I sure don't want my tax to fund losers like the UAW of GM and ford
Kaveh Sun
Kaveh Sun Dec 06, 2021 10:23PM ET
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Biden is discrimination according to Judges in Ca; they said u cant have different class or workers, favor ones over others.
Parekh Kar
Parekh Kar Dec 06, 2021 10:16PM ET
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true thatfool ll make this country to beggers bowl
Navid Sa
Navid Sa Dec 06, 2021 10:00PM ET
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Lol, such a hypocrat, now that rebates are dried up for Tesla cars he is against it and wants the government to end all the subsidies and get out of the way.
DJ Car
DJ Car Dec 06, 2021 10:00PM ET
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you did see the government proposal was to give higher credits for (corrupt) union made cars?
Chris Hall
Chris Hall Dec 06, 2021 10:00PM ET
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ya unions are not needed in corporate america where if they could away with paying everyone skilled or not skilled 8 a hr so their ceos and executives can buy more mansions and Ferraris on the back of the profits of its slave labor! corporate america already makes record profits gives executives massive pay raises meanwhile their employees barely make rent! you obviously not single one of you ever worked blue collared job you sit at desk ... you'll be replaced easier A.I is already replacing white collared workers while robots replace blue
Thomas Bjerre Kristiansen
Thomas Bjerre Kristiansen Dec 06, 2021 10:00PM ET
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Fo they get higher credits because they are In a union, or because the New price of the car is lower?
Navid Sa
Navid Sa Dec 06, 2021 10:00PM ET
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DJ Car I did, unions have their own pros and cons. but he is talking about removing all subsidies. Musk is a visionary for sure and the reason EV is picking up in the world is because of him as the pioneer, but I do believe 5-10 years from now there will be much better EVs for the masses from evolved traditional manufactures.
Ron Love
Ron Love Dec 06, 2021 10:00PM ET
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This is a consistent position by Tesla, they refused a $1.1 billion subsidy from the German government for a battery factory at Giga Berlin.
 
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