Latest / Elon Musk Podcast / Elon Musk Blasts Biden's EV Tariffs, Advocates for Free Market Competition

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Elon Musk Blasts Biden's EV Tariffs, Advocates for Free Market Competition · Elon Musk Podcast

• 0:01
  Hey, everybody. Welcome back to the Elon Musk
• 0:04
  Podcast. This is a show where we discuss
• 0:07
  the critical crossroads that shape SpaceX, Tesla X, The
• 0:11
  Boring Company, and Neuralink. I'm your host, Will Walden.
• 0:15
  Tesla CEO Elon Musk opposes President Biden's new tariff on
• 0:19
  Chinese electric vehicles. He wants no tariffs on E VS from
• 0:22
  China. During the Viva Tech conference
• 0:24
  in Paris, Musk expressed his surprise at the administration's
• 0:29
  decision and clarified that neither he nor Tesla had
• 0:33
  requested these tariffs. Musk addressed CNBC's Karen So's
• 0:37
  question, saying neither Tesla nor I asked for these tariffs.
• 0:42
  In fact, I was surprised when they were announced.
• 0:44
  This comment came in response to the Biden administration's
• 0:47
  announcement of a 100% tariff on Chinese made electric vehicle
• 0:52
  imports to the US. The White House justified the
• 0:56
  tariff, stating it aims to curb the influx of inexpensive
• 0:59
  Chinese EVs into the US market. According to the administration,
• 1:04
  Chinese government subsidies are enabling their companies to over
• 1:07
  produce cheap clean energy products, including solar panels
• 1:12
  and EVs, which surpass domestic demand and impact the market.
• 1:17
  Tesla has faced significant challenges this year, including
• 1:21
  an aging fleet, weakened consumer demand, and
• 1:24
  intensifying global competition, particularly from China.
• 1:27
  In the first quarter, Tesla's revenue saw its steepest decline
• 1:32
  since 2012, with the stock price falling nearly 30% in 2024.
• 1:39
  Despite these challenges, Musk highlighted Tesla's ability to
• 1:42
  compete effectively in China without the need for tariffs or
• 1:46
  special support. Tesla competes quite well in the
• 1:48
  market in China with no tariffs and no deferential support, Musk
• 1:53
  said. I'm in favor of no tariffs.
• 1:56
  Musk also expressed his opposition to tax incentives for
• 1:59
  electric vehicles. I'm in favor of no tariffs and
• 2:02
  no incentives for electric vehicles or for oil and gas.
• 2:05
  He stated. Reiterating his broader stance
• 2:08
  against market interventions, Musk's remarks come after he
• 2:12
  previously suggested that Chinese EV companies would
• 2:14
  dominate global markets if trade barriers were not established.
• 2:18
  Frankly, I think if there are not trade barriers established,
• 2:21
  they will pretty much demolish most other companies in the
• 2:26
  world, he warned during a company earnings call in
• 2:28
  January. During the Viva Tech conference,
• 2:31
  Musk was asked about whether the 100% tariffs would enable him to
• 2:35
  introduce a lower priced car. However, a technical issue
• 2:39
  caused his line to cut out, leaving the audience waiting for
• 2:42
  several minutes before he could continue the discussion.
• 2:45
  The White House's announcement of the 100% tariff on May 14th
• 2:49
  was aimed at countering what it described as China's unfair
• 2:52
  trade practices. This move is part of a broader
• 2:55
  strategy to protect the US market from being overwhelmed by
• 2:59
  cheaper China made electric vehicles.
• 3:01
  Tesla has experienced headwinds, particularly in China, the
• 3:04
  world's largest EV market. In April, Tesla's sales in China
• 3:08
  dropped by 18% compared to the previous year, according to the
• 3:11
  China Passenger Car Association. Globally, the company reported
• 3:15
  its first year over year quarterly decline since 2020.
• 3:18
  In the first quarter of 2024, the competitive pressure from
• 3:21
  Chinese EV manufacturers has been increasing.
• 3:24
  In the last quarter of 2023, Chinese automaker BYD
• 3:29
  temporarily overtook Tesla as the world's top seller of
• 3:32
  electric cars, highlighting the intense competition in the
• 3:36
  market. So Musk's recent comments on
• 3:39
  China tariffs represent a shift from his earlier position.
• 3:42
  In January, he advocated for trade barriers to prevent
• 3:45
  Chinese EV companies from dominating the US market,
• 3:48
  suggesting that without such measures, these companies could
• 3:51
  overwhelm the competition. In April, Musk acknowledged the
• 3:54
  competitiveness of Chinese car companies.
• 3:57
  Chinese car companies are by far the most competitive, he said
• 4:01
  during a podcast with Norgus Bank Investment Management CEO
• 4:04
  Nikolai Tangen. They make great cars and they
• 4:09
  work very hard. Former Tesla board member Steve
• 4:13
  Wesley commented on Musk's divided focus, suggesting that
• 4:17
  the CE OS attention is spread too thin across his various
• 4:19
  ventures. Wesley noted the need for Musk
• 4:22
  to concentrate more on Tesla, especially during critical times
• 4:27
  for the electric vehicle industry.
• 4:28
  So Wesley compared Musk's approach to that of Invidia CEO
• 4:32
  Jensen Huang, who is known for delivering consistent results
• 4:35
  through Focus leadership. He suggested that Musk could
• 4:38
  benefit from a similar level of concentration to help Tesla
• 4:42
  navigate its challenges. So Wesley compared Musk's
• 4:46
  approach to that of Invidia CEO Jensen Huang, who is known for
• 4:50
  delivering consistent results through Focus leadership.
• 4:53
  He suggested that Musk could benefit from a similar level of
• 4:55
  concentration to help Tesla navigate its challenges.
• 5:02
  The distractions facing Musk, including staff layoffs and
• 5:06
  controversies over his pay, have contributed to to concerns about
• 5:11
  his ability to lead Tesla effectively.
• 5:14
  Wesley noted that these issues have played a role in the
• 5:16
  company's recent setbacks. Wesley also predicted that Tesla
• 5:19
  might introduce a new $25,000 car by next year, despite no
• 5:23
  official confirmation or evidence from the company.
• 5:25
  He believes that such a model could become a significant
• 5:28
  success in the market. Tesla's recent financial
• 5:31
  performance has been disappointing, with the company
• 5:37
  reporting its largest quarterly revenue decline since 2012.
• 5:44
  This comes amid a broader slowdown and increasing
• 5:46
  competition in the EV industry, compounded by the new trade
• 5:51
  tensions between the US and China.
• 5:54
  Musk's commitments to other ventures, such as SpaceX X,
• 5:59
  Neuralink, and the Boring Company, have further diverted
• 6:03
  his attention from Tesla. These multiple roles have raised
• 6:07
  questions about his ability to focus adequately on the company
• 6:10
  during this pivotal period. The Biden administration's 100%
• 6:14
  tariff on Chinese electric vehicles represents a
• 6:17
  significant development in the ongoing trade dispute between
• 6:20
  the US and China. The move aims to protect the US
• 6:23
  market from the influx of subsidized, low cost Chinese
• 6:29
  EVs, which the administration argues are undermining fair
• 6:33
  competition. Hey, thank you so much for
• 6:40
  listening today. I really do appreciate your
• 6:42
  support. If you could take a second and
• 6:44
  hit the subscribe or the follow button on whatever podcast
• 6:47
  platform that you're listening on right now, I greatly
• 6:50
  appreciate it. It helps out the show
• 6:52
  tremendously and you'll never miss an episode.
• 6:55
  And each episode is about 10 minutes or less to get you
• 6:58
  caught up quickly. And please, if you want to
• 7:01
  support the show even more, go to patreon.com/stage Zero.
• 7:07
  And please take care of yourselves and each other, and
• 7:09
  I'll see you tomorrow.