Elon Musk, the visionary behind Tesla, recently made headlines by endorsing Donald Trump for president.

This endorsement surprised many, as Trump has consistently opposed policies that have been crucial to Tesla's success, such as government loans, tax breaks, and electric vehicle (EV) mandates.

Despite Musk's growing alignment with Republican rhetoric, the automaker continues to advocate for policies that align with Democratic priorities, revealing a complex relationship between Musk's political stances and business interests.

Tesla's Advocacy for Stricter Emissions Regulations

In February, Tesla submitted a filing to the U.S. Environmental Protection Agency (EPA), urging the Biden administration to allow California to implement stricter vehicle emissions rules than the rest of the country-an approach Trump has strongly opposed.

According to Reuters, Tesla has also lobbied for regulations to ban the production of most new gasoline cars by 2035, a policy often criticized by Trump and other Republicans. These actions highlight Tesla's ongoing commitment to advancing the EV industry, even as Musk publicly distances himself from certain progressive platforms.

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Musk's Pragmatic Approach to Subsidies

Despite his public criticism of subsidies, Musk's approach to government support remains pragmatic. Tesla has greatly benefited from various government incentives, including a $465 million loan from the U.S. Department of Energy, which played a pivotal role in establishing Tesla's first major manufacturing facility in Fremont, California.

Since 2018, Tesla has earned nearly $9 billion by selling regulatory credits, awarded to manufacturers who exceed emissions standards, to other automakers. These credits have been essential to Tesla's financial success, especially as the demand for cleaner vehicles increases.

The Growing Bond Between Trump and Musk

Musk's endorsement of Trump became more pronounced in July when he not only supported the former president but also pledged to fund a political action committee that has spent $21 million in support of Trump and against the Democratic ticket.

This endorsement solidified Musk's shift towards Republican ideals, even as he reassures skeptics about Trump's stance on EVs, stating that it will be fine. However, this alliance raises questions about Musk's long-term goals and how they align with the interests of Tesla and the broader EV industry.

For Lehigh University's management professor Andrew Ward, Tesla won't be the endgame for the tech billionaire since Musk has many connections across other industries like space, AI, and neuroscience.

Although Musk will sacrifice "some of the short-term interest in Tesla," it will go according to plan if it satisfies his long-term interests for his ambitions.

Tesla's Continued Reliance on Government Support

Tesla's reliance on government incentives remains evident in its recent lobbying efforts. For instance, in a July 2023 filing with the EPA, Tesla advocated for stricter emissions limits, not only to address environmental concerns but also to maintain the demand for regulatory credits, which have been a significant revenue source for the company.

In the last quarter alone, Tesla generated $890 million from the sale of these credits, contributing to its net income of $1.5 billion.

Musk's Shifting Stance on Climate and Identity Politics

Musk's views on climate change and identity politics have also evolved over time. While he once criticized Trump for withdrawing from the Paris Agreement, Musk has since downplayed the near-term risks of climate change, even as Tesla continues to push for policies that would accelerate the transition to clean energy. Additionally, Musk's growing disdain for identity politics contrasts with Tesla's efforts to promote diversity and inclusion within the company, as highlighted in a 2022 filing with the California Air Resources Board.

Complex Interplay of Ideology and Business Interests

Elon Musk's support for Donald Trump and his shifting political views illustrate a complex interplay between ideology and business interests. While Musk has embraced certain conservative ideals, Tesla continues to advocate for policies that are more closely aligned with progressive agendas.

Regardless, people are much more excited to see what will happen for the upcoming interview of Musk with Trump on X. According to USA Today, it will kick off on Aug. 12 at 8 PM ET. You can watch it live on the platform and it will be hosted by Trump's account.

Up to this day, many can't believe that Trump has returned to X after his account was banned in 2022.

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