Tesla’s Musk says Biden’s electric vehicle bill shouldn’t pass Congress – .

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Tesla’s Musk says Biden’s electric vehicle bill shouldn’t pass Congress – .


SAN FRANCISCO, Dec.6 (Reuters) – Tesla Inc (TSLA.O) chief executive Elon Musk said on Monday that Congress should not approve the Biden administration’s bill to increase subsidies for electric vehicles (EVs), claiming the proposal would worsen the US budget deficit.

The billionaire entrepreneur is stepping up criticism of the administration and Democrats over a proposal to give electric vehicles made by unions and in the United States an additional tax incentive of $ 4,500. Tesla and foreign automakers do not have unions in their US factories.

“Honestly, it might be better if the bill didn’t pass,” Musk said at the WSJ CEO Council summit.

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“I am literally saying get rid of all subsidies,” he said, adding that the government should “step back and not hinder progress”.

Tesla has benefited from a variety of government aids and programs.

Since 2019, Tesla has generated more than $ 3 billion in revenue by selling regulatory credits to other automakers that do not meet government emissions standards. The increase in revenue helped Tesla start making annual profits last year.

Tesla Inc CEO Elon Musk walks next to a screen showing an image of the Tesla Model 3 car during an opening ceremony for the China-made Tesla Model Y program in Shanghai, China, Jan.7 2020. REUTERS / Aly Song / File Photo

The company acquired its Fremont, Calif., Assembly plant from the government as it restructured General Motors. Tesla also received a low-cost loan of $ 465 million from the Department of Energy, which it prepaid.

Tesla also received a federal tax credit of $ 7,500 per vehicle. This credit was applied in full to the first 200,000 Tesla sold, then was gradually phased out.

In his comments on Monday, Musk also reiterated his opposition to a Democrats’ proposal to tax billionaires.

“It doesn’t make sense to take the work of allocating capital away from people who have shown great skill…

Musk said his brainchip startup Neuralink hopes to begin human trials next year pending approval from the U.S. Food and Drug Administration.

“I think we have a chance with Neuralink that we can restore full body functionality to someone with a spinal cord injury,” he said.

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Reporting by Hyunjoo Jin and Jarrett Renshaw Editing by Sandra Maler and Sonya Hepinstall

Our Standards: Thomson Reuters Trust Principles.

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