Elon Musk's Ties to Trump Could Boost EV Industry
Elon Musk's close relationship with President Donald Trump may have a positive impact on the electric vehicle (EV) sector.
According to Rivian CEO RJ Scaringe, Musk's proximity to Trump can provide valuable insights into the EV space. "Tesla is the largest EV manufacturer in the U.S.," Scaringe said. "It's advantageous to have someone close to the President who understands the importance of electric vehicles."
Musk has emerged as a key advisor to Trump, leading the Department of Government Efficiency. He has proposed cutting subsidies for EVs, a move that could affect Tesla and other EV manufacturers. However, Scaringe believes the industry can thrive without subsidies.
Trump's initial stance on EVs was negative, but he softened after Musk's endorsement. "I'm for electric cars," Trump said. "Elon endorsed me very strongly."
Scaringe views Trump as open to the benefits of EV companies like Rivian, particularly in the context of competing with China in the electrification race. Rivian recently received a $6.57 billion loan from the Department of Energy to support its manufacturing facility in Georgia.
"The jobs created by EVs in the U.S. are often in areas with more Republican support," Scaringe said. "Trump, as a businessman, recognizes the importance of these businesses succeeding."
Tesla has also benefited from Trump's presidency. Following his election, Tesla's stock surged, driving its market valuation to $1 trillion. Musk's personal wealth also increased significantly.