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Infrastructure: why Elon Musk is headlong against Joe Biden’s plan

Posted on Dec. 2021 at 14:48Updated Dec 7, 2019 2021 at 14:53

“It would be better if the plan didn’t pass. Elon Musk was particularly critical of Joe Biden’s infrastructure investment plan at a conference hosted by the Wall Street Journal .

Adopted at the beginning of november by Congress, the text provides for a total of $ 1.2 trillion in investment, including $ 550 billion in new spending, and has yet to be voted on in the Senate. In particular, it plans to dedicate $ 7.5 billion to the development of the network of charging stations for electric cars, as well as the agreement of a tax credit of up to $ 12,500 for the purchase of a electric vehicle.

A plan that favors GM rather than Tesla

Known to regularly oppose the Biden administration, Elon Musk, who spoke from the Tesla plant in Austin, Texas, therefore expressed strong reservations about this investment plan. He points out in particular that Tesla’s electric car sales, which represent around two-thirds of the US market, are not currently linked to any public aid. “We do not need this tax credit,” he insists, before adding that this aid “is not a consequence of Tesla’s activity, but rather of lobbying from General Motors”.

According to the bill, Tesla would only benefit to a lesser extent from this tax credit. Of the 12,500 dollars that the boost can reach to encourage the purchase of an electric vehicle, 4,500 dollars are conditioned for the assembly of the car in an American factory whose employees are represented by the union. United Auto Workers .

A criterion that concerns Stellantis, Ford, or General Motors, but not Tesla, whose CEO is rather opposed to unionization. At the beginning of November, Toyota had already protested against this condition and stressed that it considerably limited the number of electric vehicles eligible for the maximum aid.

Elon Musk also believes that the planned spending for strengthening the network of charging stations for electric vehicles is “not necessary”. “Do we need support for gas stations? No, ”he compared, before calling for the removal of this measure. After calling for cuts in public spending, the billionaire clarified his vision for the role of the US government, which should be that of “a referent but not that of a major player in the market”.

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