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On Monday (August 19th) local time, former US President and Republican presidential candidate Trump stated that if he were to return to the White House, he would provide Tesla CEO Musk with a cabinet position or government advisory position.
In July of this year, Trump was shot at at a campaign rally in Pennsylvania, and subsequently Musk publicly announced his support for Trump.
On August 20th, Musk's "America PAC," which supports Trump's presidential campaign, was recruiting canvassers in North Carolina. Earlier, it was reported that Musk planned to donate about $45 million per month to the organization. Musk later confirmed the donation, but stated that the amount was "much lower" than the $45 million.
Previously, Musk had also expressed his intention to serve in the Trump administration. On August 12th local time, Trump accepted an interview with Musk. During the interview, Musk called for the establishment of a government committee to ensure the effective use of taxpayer funds and offered to serve in key positions within the committee. Musk said, "I am willing to contribute to such a committee - I would be very happy if it were established
However, Trump continued to emphasize his slightly negative stance on electric vehicles yesterday (August 19), stating that he will continue to consider canceling the $7500 tax credit for certain new electric vehicles. This may affect Tesla's business.
Tax credits and tax incentives are usually not a good thing, "Trump told the media after a campaign event in York, Pennsylvania. I haven't made a final decision yet. I really like electric cars, but I also like gasoline powered cars, hybrid cars, and other things that may arise, "he said.
In July of this year, at the Republican National Convention held in Milwaukee, Trump threatened to abolish the mandatory electric vehicle policy on his first day in office. He believes that this can save the American automotive industry, which is heading towards "complete destruction," and enable American consumers to save thousands of dollars per car.
Musk also responded to the cancellation of subsidies during Tesla's second quarter earnings conference call. Trump's cancellation of tax incentives for electric vehicles may have some impact on Tesla in the short term, but in the long run, it will be beneficial for Tesla and a devastating blow to its competitors.
In Trump's previous term, he pushed for the cancellation of the fuel consumption standards set by the Obama administration in 2020: under the original standards, car manufacturers had to achieve an average fuel efficiency of 5% per gallon of gasoline; In the new cycle from 2021 to 2026, the standard was lowered to 1.5%.
(Times Finance and Economics, He Mingliang, Comprehensive Self owned Financial Union, Observer Network)
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