Donald Trump and Tesla: A Complex Relationship

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Donald Trump, the 45th President of the United States, has had a complex relationship with Elon Musk’s Tesla. As a businessman and reality TV star turned politician, Trump has expressed both praise and criticism towards the electric vehicle (EV) manufacturer. This blog post explores Trump’s opinion on Tesla, examines the regulatory environment surrounding the company, and delves into the impact Tesla has had on the economy.

Trump’s Opinion on Tesla

Donald Trump has made several statements about Tesla and Elon Musk throughout his presidency and beyond. While his public remarks haven’t consistently followed a single narrative, they provide insights into his evolving views on the company.

During his time in office, Trump praised Tesla for its innovative technology and job creation. In a interview with Bloomberg in 2018, Trump stated, “Tesla is a wonderful company. I think Tesla is one of the great companies of our time. [Elon Musk] has to help us with jobs.”

However, Trump’s support for Tesla did not translate into favorable policies. Throughout his presidency, Trump sought to roll back fuel efficiency standards set by the Obama administration, which could have impacted Tesla’s ability to sell its high-end electric vehicles. Additionally, his administration attempted to eliminate federal tax credits for electric cars, including Tesla vehicles, although these efforts were ultimately unsuccessful.

In early 2020, Trump took to Twitter to criticize Tesla after Musk announced plans to build a Gigafactory in Germany. Trump tweeted, “…does not build their factories in the United States! General Motors, Ford, and others are all coming back, now we have to compete with our own suppliers….”

Despite these remarks, it is worth noting that Trump’s tweets and statements often reflect his personal opinions and negotiations rather than concrete policy actions against the company.

Regulatory Environment and Tesla

Under the Trump administration, the regulatory environment for Tesla was a mixture of challenges and opportunities.

One of the key challenges faced by Tesla was its exclusion from federal electric vehicle tax credits. The $7,500 tax credit available to buyers of electric vehicles phased out for Tesla after the company reached a threshold of 200,000 electric vehicles sold. This put Tesla at a disadvantage compared to other EV manufacturers, who still benefited from tax credits.

On the other hand, the Trump administration also had some favorable policies for Tesla. In 2019, the administration repealed the federal mandate requiring automakers to achieve a fleet-wide average fuel efficiency equivalent of 54.5 miles per gallon by 2025. This decision eased regulatory pressures on Tesla and other automakers producing electric vehicles, allowing them more flexibility in meeting their targets.

Tesla’s Impact on the Economy

Tesla’s success and growth under Elon Musk’s leadership have had a significant impact on the economy, and this has been recognized by both supporters and critics.

One of the key contributions Tesla has made to the economy is job creation. As of 2021, Tesla directly employs thousands of workers in the United States, with its manufacturing plants and Gigafactories creating jobs in manufacturing, engineering, and research and development. Furthermore, Tesla’s influence extends beyond its direct employees to a network of suppliers and service providers, fostering additional employment opportunities.

Additionally, Tesla’s stock performance has been closely watched and has made headlines for its remarkable growth. This has contributed to the wealth of investors, including those who hold shares in retirement plans and investment funds. The success of Tesla has also helped attract investment to the EV industry as a whole, encouraging innovation and competition.

However, critics argue that Tesla’s success is inflated and primarily driven by government subsidies and favorable policies. They contend that without these subsidies, Tesla’s economic impact would be less significant. Nevertheless, it is important to note that subsidies and policies supporting emerging industries are not uncommon, and they often shift as technologies mature and market dynamics evolve.


The relationship between Donald Trump and Tesla has been intricate and multifaceted. While Trump has expressed praise for Tesla’s innovation and job creation, his policy decisions didn’t always align with his public statements. Tesla faced challenges under the regulatory environment of the Trump administration, including the exclusion from federal tax credits for electric vehicles.

The impact of Tesla on the economy, however, cannot be denied. The company’s job creation, stock performance, and influence on the EV market have played a significant role in shaping the industry’s landscape. Whether Donald Trump’s opinions and policies had a lasting impact on Tesla’s trajectory is a matter of ongoing debate. Only time will reveal the true extent of their relationship.


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