"It would be devastating for our competitors, and it would hurt Tesla slightly, but long term it probably actually helps Tesla, would be my guess," Musk said in an earnings call on Tuesday, referring to Trump potentially scrapping President Joe Biden's tax credits that can effectively lower the price of an EV by up to $7,500.
Experts previously told Business Insider that scrapping this tax credit could have a devastating impact on electric vehicle sales, potentially making the US auto industry less competitive and making EVs "insurmountably expensive" for many consumers.
Tesla's scale and ability to make electric cars at a profit gives it an advantage over many of its rivals, and Musk is betting that this would allow it to weather the storm if EV incentives were to be cut.
"Take away the subsidies. It will only help Tesla," he wrote in a post on X earlier in July.
Tesla did not respond to a request for comment from BI, sent outside normal working hours.
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