Home » Economy » After having taken advantage of it, Elon Musk wants to “remove all subsidies”

After having taken advantage of it, Elon Musk wants to “remove all subsidies”

The boss of Tesla is not a fan of subsidies and is making it known … and it does not matter if Tesla has been helped to the tune of several billion.

In addition to his rockets and electric cars, Elon Musk is also known for his often very strong opinions, especially in matters of business. And the least that we can say is that his last projection did not go unnoticed; According to him, the US government should altogether stop subsidizing companies.

The billionaire was among the guests at the prestigious CEO’s edition, a roundtable organized by the Wall Street Journal, which brings together some of the most influential leaders on the planet. But in the midst of this bed of tycoons, it is safe to say that the boss of Tesla did not put everyone in the pocket; he took the opportunity to say that he wanted all subsidies to end. “I literally say: get rid of all the subsidies”, He blurted out.

A projection taken as a joke by the audience, who started by having fun. But the billionaire persists and signs; he believes that the American government has spent too much money supplying industries whose future is dotted. “We spent so much money …”, He justifies himself. “The federal budget deficit is crazy.”

The law of the jungle according to Musk

At this stage, the whole audience had already guessed on what example the electric vehicle tycoon was basing his argument: it is obviously fossil fuels. “Do we really need to support gas stations? I do not think so. So there is no need to [ces subventions]”, He shifts dryly.

No wonder from a billionaire who built his fortune on competing technology. In addition, Musk has never made a secret of his very North American conception of business. For him, commerce is above all the law of the jungle. He sees the market as a ruthless El Dorado where a form of natural selection takes place; the strongest survive while the rest die.

If we follow his reasoning, we understand that he considers it unnecessary to subsidize sectors deemed incompatible with social and environmental objectives, and therefore doomed to failure according to him. An analysis not entirely devoid of foundation, even if the form is questionable.

Tesla has benefited greatly from these subsidies

But we must however qualify this reading of the situation with a other important information in this context. Because in theory, these subsidies are often used as a means of pushing a market towards a new model more in line with the problems of the future (economists then speak of nudge). Does this remind you of anyone?

Because Musk clearly failed to mention a crucial detail in his presentation. It is true that, as he claims, there was no subsidy when he created Tesla. What he forgets to specify, however, is that his firm in has greatly benefited afterwards. She even owes a much of its meteoric rise to these grants. And we’re not talking about small change, but about billion dollars in government aid. Even though they ended in 2020, it is indisputable that the brand would not be where it is today without this portfolio which has allowed it to be extremely aggressive in the market. Whoops !

In essence, Musk is therefore seeking to burn a bridge that he is more or less the only one who has had time to cross. For some observers, this is a divisive, but pragmatic vision of a changing world. Others, on the contrary, see it as a hypocritical reflection of a billionaire who already has his head halfway on Mars if not having his feet on Earth. In any case, one thing is certain: Tesla continues its march forward, and we should not count on Musk to embarrass the competition.

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