The prospective leaders of the Department of Government Efficiency (DOGE), set to launch in January under Donald Trump’s second administration, visited the U.S. Congress and met with officials from the ruling party. Elon Musk, Tesla’s CEO and one of the DOGE co-leaders announced plans to eliminate tax credits for electric vehicle purchases.
According to Politico, Musk and former Republican presidential candidate Vivek Ramaswamy, who will lead DOGE, visited the U.S. Capitol on Thursday. Musk, a father of eleven children, drew attention by carrying his 4-year-old seventh son, X Æ A-Xii, on his shoulders.
Musk spoke to reporters after meeting with Republican Senator John Thune of South Dakota, the incoming Senate Majority Leader. He emphasized the importance of responsible public fund management and stated, “I believe we should eliminate all credits,” referring to the $7,500 tax credit for electric vehicles.
In 2022, U.S. President Joe Biden implemented the Inflation Reduction Act (IRA) to boost green manufacturing, offering up to $7,500 in tax credits for North American-made electric vehicles. Despite the potential negative impacts on Tesla’s sales, Musk supports eliminating these credits. On July 16, he posted on X, “Eliminate all subsidies. This helps Tesla. Also, subsidies should be reduced across all industries.”
During Tesla’s Q2 earnings call in the same month, Musk predicted that subsidy cuts would be “devastating for competitors.” He added, “Tesla will be slightly hurt, but it will be beneficial in the long run.” Industry analysts suggest that removing electric vehicle subsidies would impact the entire sector, including Tesla, and that Tesla’s ability to weather the change could lead to increased market share.
