Elon Musk wants to abolish all subsidies

Elon Musk in Grünheide

The Tesla boss speaks out against subsidies.

(Photo: dpa)

Dusseldorf $ 8,000 per vehicle – Tesla boss Elon Musk would forego that much subsidy. This is how high are the tax breaks for electric vehicles that are included in the infrastructure program promoted by US President Joe Biden.

But Musk speaks out against the package of laws called “Build Back Better”, which is currently being negotiated in the US Senate and which is supposed to be spent on a total of two trillion dollars.

The reason: The USA would get into debt too much, and the state would interfere too much in the market. The subsidies for the charging infrastructure already decided in the USA would also distort competition. “Do we need subsidies for petrol stations? We don’t need them, “said Musk on Monday (local time) at a conference of the” Wall Street Journal “.

Rather, the state should act like a referee “with as many players as possible on the field”. With his remarks, Musk throws light on his decision to forego EU subsidies of more than 1.1 billion euros for the new battery cell plant in Grünheide.

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Governments around the world would add bureaucracy every year. “Unfortunately, there is no rubbish collection for rules and regulations,” said Musk over video from the Tesla factory in Austin, Texas. “It is getting harder and harder to tackle things and to finish them.” With serious consequences: “That hinders the progress of civilization,” said Musk. His solution: “Let’s get rid of all subsidies.”

The new factory near Berlin was built at record speed. But numerous complaints and conditions delayed the schedule. The final approval is also still pending; Tesla built the factory with preliminary approvals at great risk.

Advantage of GM

Musk’s criticism of subsidies in the US has a deeper reason. In the new infrastructure law, President Biden provides a special subsidy for electric vehicles that are built in unionized factories. At $ 12,500, they receive more than a third more tax support. “Biden is a UAW puppet,” Musk wrote on Twitter.

The Tesla boss is referring to the United Auto Workers auto union, which is in charge especially in the north of the United States. The higher funding benefits almost exclusively General Motors, which manufactures the Chevy Bolt electric car with UAW workers.

Not only Tesla sees itself disadvantaged. The US heads of Volkswagen, BMW and Mercedes have also signed a letter to the US Senate in which they warn against discrimination against American workers and see the US climate targets as being endangered.

Tesla has so far fought vehemently against the union in its US plants. A works council is currently being elected in Grünheide, and representatives of IG Metall see problems there too. The early election would mean that more representatives from middle management would be eligible, as many workers have not yet been hired for production – and are as tame as the IG Metall district management already suspected.

More: Concern about battery secrets: That is why Tesla does without government aid worth billions.

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