Donald Trump returning to power and his influence on the future of electric vehicles (EVs) under Elon Musk’s leadership could be a bane for China and a boost for India.
Trump’s policies, combined with Musk’s vision for EVs, could reshape the global automotive industry, particularly in relation to China’s burgeoning EV market and India’s rising EV ambition.
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| With Donald Trump returning to power in the US,Tesla may face a backlash in China -- Photo: Transport Topics. |
Trump’s return to power and EVs
Trump’s approach to the automotive and energy sectors would likely lean towards deregulation and boosting American manufacturing.
During his previous term, Trump made it clear that he favoured policies that supported domestic production and less government interference.
This could mean more incentives for companies like Tesla to expand its EV manufacturing in the US while avoiding strict environmental regulations.
One of Trump’s goals during his first term was to reduce reliance on foreign energy, especially from China.
He also advocated for internal combustion engine (ICE) (petrol or gasoline) vehicles and said EVs “could hardly take you to your saloon,” implying their limited distance on a single charge.
However, Musk’s hardcore campaigning for Trump could change all that.
With the Trump administration’s “America-First” policy, the focus was on strengthening American industries and reducing dependence on imports.
With Musk a key aide of Trump now, these policies could possibly push for a faster shift towards EVs as a means of achieving energy independence.
The government may offer more tax breaks or direct investments in EV manufacturing, further boosting the potential of US automakers, Tesla in particular.
Elon Musk and future of EVs
Musk, the chief executive officer (CEO) of Tesla, has been a pivotal figure in making electric vehicles mainstream.
Under his leadership, Tesla has become a global leader in EV production. Musk’s vision goes beyond just selling cars — he wants to accelerate the world’s transition to sustainable energy.
His bold strategies include reducing the cost of EVs, improving battery technology, and expanding Tesla’s charging infrastructure.
Musk is also working to make EVs more accessible to the general public.
By focusing on mass-market models like the Tesla Model 3, and future models like the Tesla Cybertruck, he’s trying to reach consumers at every price point.
Impact on China’s EV market
China has long been the global leader in the EV market. The country has invested heavily in EV technology, creating a thriving industry with companies like BYD pushing forward.
However, with Trump’s return, US.-based manufacturers like Tesla could see favour from him and this may create challenges for China.
But Musk has one worry here — he has a mega manufacturing plant in China and Trump’s reign could see the Communist Party of China creating a difficult situation for Musk.
For instance, if Trump imposes duties on Chinese EVs, Tesla could face a backlash in China.
Furthermore, if the US government under Trump offers more incentives for American-made EVs and battery production, it could further weaken China’s position. It could thus weaken Tesla in China.
Boon for Indian EVs?
India, with its rising demand for cleaner alternatives to traditional gasoline (petrol)-powered vehicles, is well positioned to benefit from the global push towards EVs.
This is especially true as Trump apparently is looking to be an ally of India, and this may prompt Musk to speed up Tesla’s manufacturing plan for India.
Musk has already hinted at setting up a production facility in India, which could create thousands of jobs and boost the country’s local EV manufacturing capacity.
As China’s dominance in the EV market faces potential roadblocks, India could use this to emerge as an important player in the global EV race.
The country’s low-cost manufacturing, large consumer base, and government push for cleaner energy make it an attractive destination for both international and domestic EV companies.
E-Vroooom’s views
Trump’s pro-manufacturing policies may boost American companies like Tesla, and this could disrupt China’s EV dominance.
With Donald Trump returning to power, it could accelerate the growth of electric vehicles in the US and globally, especially with Elon Musk at the helm in the EV space and India could benefit while this may be a bane for China.
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