The mutual support shown between former US president Donald Trump and Tesla Chief Executive Elon Musk continues to intensify. At a 19 August 2024 campaign event in York, Pennsylvania—a important swing state in the November election—Trump stated he would consider making Musk a cabinet member or advisor. At the same event, he also weighed the possibility of ending the US$7,500 subsidy available for new electric vehicle (EV) purchases.
The provision for tax credits was signed into law in 2022 as part of the Inflation Reduction Act (IRA), which enabled those meeting income requirements to make a full claim on a pure EV purchase or a limited claim if buying a hybrid. "Tax credits and tax incentives are not generally a very good thing," Trump told Reuters in an interview. However, it should be noted that Tesla has historically benefited from this system.
