On the evening of August 12, Tesla CEO Elon Musk and Republican presidential candidate Donald Trump had a friendly conversation on X (formerly Twitter), where Musk pitched electric vehicles (EVs) to Trump's supporters.
Musk stated that the world should shift toward sustainable energy as battery-powered cars could be a part of the future. He emphasized that there is no need to sacrifice existing driving needs for environmental protection.
Musk, who already wields significant influence in Washington, is becoming increasingly close to Trump. Musk is providing Trump with advice on EVs and cryptocurrency policies.
Political influence on EV adoption
While Musk makes the case for EVs to Trump's supporters, Tesla's EV sales and production have declined over the past few quarters as the company projects a significant slowdown in sales growth in 2024. The US adoption rate of EVs varies by state and is influenced by partisan views. In states dominated by Republicans, sales often lag behind those in states where Democrats hold the majority.
Trump, a long-time critic of EVs, recently began praising Tesla. During their conversation on X, Trump called Musk's product "incredible" while commending Musk's intelligence and mentioning many of Musk's business investments.
Trump's changed stance on EVs could bring significant economic benefits to Tesla and Musk. The former US president, however, has vowed to eliminate some benefits designed to assist EV market growth should he return to the White House, raising concerns about a further slowdown in EV sales growth.
Aiming to mitigate the adverse effects of political factors on EV sales, Musk stated that he does not support vilifying the oil and gas industries. Musk adds that the global economy would collapse as it still needs fossil fuels.
Musk to play a greater role in US politics
Musk also expressed a willingness to play a role in cutting federal spending in a potential second Trump administration. The Tesla CEO indicated his desire to further integrate himself into US politics.
If Trump is reelected as president, Musk suggests establishing a government committee to ensure that taxpayers' money is spent wisely and volunteered to play a role in this effort. Trump praised the idea, calling Musk "the greatest cost-cutter."
Musk has already established a Super PAC (Political Action Committee) to support Trump's 2024 presidential campaign. During Trump's previous presidency, Musk served on a White House advisory council but left after Trump decided to withdraw from the landmark Paris Climate Agreement.
Their highly anticipated conversation was delayed by over 40 minutes, which Musk blamed on a cyber attack. However, there was no evidence to support this claim. Nonetheless, according to X, the conversation had over a million listeners.
Since Musk purchased X in 2022, the social media platform has faced technical issues and scrutiny. At the start of the event, Musk expresses the scale of opposition to hearing what Trump has to say, due to the alleged cyberattack.
