Perspective: The Split Personalities of Musk and Tesla

In December, when Tesla CEO Elon Musk was preparing to assume his new position leading the Department of Government Efficiency, a reporter asked him whether he supported removing the $7,500 tax credit for electric vehicles that was passed in 2022 as part of the Inflation Reduction Act. Musk replied, “I think we should get rid of all credits.”

Similarly, President Donald Trump declared a “national energy emergency” in January and said his administration would eliminate what he described as “the electric vehicle mandate” and provide for true consumer choice in the marketplace.

Both Trump’s and Musk’s positions seem to reflect an inclination toward a free marketplace with fewer regulations, mandates and subsidies.

For supply chains broadly and trucking specifically, a balanced EV policy that takes into account both the need for some government support to introduce products to the marketplace and the value of market freedom are crucial for the transportation industry’s future and the best interests of business and consumers.

MORE FROM FULTON: Overcoming the Greatest Hurdle to ZEV Adoption

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Musk’s views appear to be shaped by his belief in the inevitability of EVs. Further, his stated vision of the future is that all transport vehicles will be electric and autonomous.

Based on Musk’s statements and his role as a close Trump adviser, one must wonder about Tesla’s recent actions and statements.

At a January legislative hearing in Oregon involving a measure to delay by two years a mandate that requires a percentage of all medium- and heavy-duty truck sales to be zero emission, a Tesla representative testified in opposition of the bill. Tesla indicated it would produce thousands of its Semi EV truck tractors in 2026 and that the mandate should remain. However, Tesla had indicated that those same trucks would be available in 2021, and fewer than 200 are on the road today.

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And in February, Tesla sent a letter to shareholders, writing, “We expect Cybertruck to be eligible for the IRA consumer tax credit, helping to improve affordability and access for even more customers.” Why make such a statement about that pickup truck model — or any EV — when your CEO has indicated he does not support the continuation of those tax credits, and the country’s president has said he plans to eliminate them?

Both Tesla’s statement to shareholders and its opposition to delaying a mandate for zero-emission vehicles appear to contradict Musk’s views. Is this a situation where Musk professes opposition to subsidies and mandates but privately may have a different viewpoint that Tesla is mirroring?

If Musk truly supports the removal of subsidies and the “electric vehicle mandate,” Tesla’s statements and position should reflect this.

The reality is that ZEVs occupy an area in which some middle ground might be appropriate. The transition to new vehicle technologies has been supported in the past through some government support. The EPA SmartWay program is a good example through which grants awarded to companies and fleets for emission-reduction and energy-efficient technologies helped speed the adoption of those products. The EV industry in China, where more EVs operate than anywhere else in the world, has been aided by government subsidies and investments. A case can be made that some continued financial support may be warranted for equipment and infrastructure through tax incentives for a limited period as these cleaner technologies evolve and improve.

At the same time, mandating specific vehicle power or energy sources and dictating to consumers what they must purchase usually proves to be counterproductive, as buyers tend to view such policies with a jaded eye. In buyers’ eyes, if a product has value, there’s no need to mandate its use. Further, mandates tend to take a one-size-fits-all approach, which does not lend itself to the different needs and uses of vehicles or appreciate the country’s geographic nuances.

As the EV marketplace matures, an approach that favors some government funding — but no overbearing mandates — would seem prudent.