Tesla shares are set to break a losing streak after Tesla CEO Elon Musk said Congress shouldn’t approve the Biden Administration’s infrastructure bill that will include electric vehicle subsidies.

Tesla (TSLA) – stock seemed ready to snap a four-day losing streak during the Tuesday session after the outspoken CEO Elon Musk stated that Congress shouldn’t approve Pres. Joe Biden’s $1 trillion Build Back Better legislation that includes subsidies for EVs.

Musk stated that the Congress should not approve Pres. Biden’s bill to increase subsidies for electric vehicles, saying the Dem-led proposal that provides union-made, U.S.-built EVs an additional $4,500 tax incentive would make the nation’s budget deficit worse.

“Honestly, it may be better if the bill does not pass,” Musk stated during a Wall Street Journal Council Summit.

“I’m literally saying throw out all of the subsidies,” Musk said, while adding that the federal government “…should I believe just try to get out of the way and not slow the progress.”

Tesla received $400 million from bailout support and federal loans back in 2010. However, that loan was repaid in full with interest in May of 2013, almost a 10 years early.

More recently, the electric vehicle company has withdrawn its request for 1.14 billion euros from the German government that was going to be used as aid to construct an almost-completed battery factory close to Berlin.

On Monday, Musk reiterated his opposition to a proposal by Dems to tax billionaires.

“It doesn’t make any sense to have the job of capital allocation taken away from individuals who have demonstrated great skill and then turn around and give it to those who have demonstrated very poor skills in capital allocation, which happens to be the government,” Musk stated.

Tesla and SpaceX boss Elon Musk has been critical of Pres. Biden, dubbing the Administration as “not the friendliest” after his company wasn’t invited to participate in a car-makers’ summit in late summer.

Tesla shares were up 3.63% at $1,045.66 at last check. Over the last four trading days, the shares were down 11.88%, though the stock is still up more than 38% since Jan.

Author: Steven Sinclaire

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