Tesla CEO Elon Musk says that Trump administration may not be negative on fossil fuels, while being positive on renewables
Published By: Eunice Gettys on January 6, 2017 10:40 am EST
Yesterday, The Country Caller reported that Morgan Stanley’s Adam Jonas finds the newly formed relationship between Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk and the President-elect Donald Trump quite fascinating. We were not exactly sure what the analyst was implying back then, but now an Electrek report clearly points towards the strengthening relationships between the two.
During the investor event at the Gigafactory in Sparks, NV, Mr. Musk described his private meeting with Mr. Trump in December that suggested hopeful signs for the clean tech industry. The publication quoted the Tesla chief saying:
“The President-elect has a strong emphasis on US manufacturing and so do we. We are building the biggest factory in the world right here, creating US jobs… I think we may see some surprising things from the next administration. We don’t think they will be negative on fossil fuels… but they may also be positive on renewables.”
When a revolutionary clean-tech leader like Mr. Musk says something like that about the Trump administration, it is indeed noteworthy. So, the upcoming renewable energy policies will not be as bad as many people have been expecting.
We already knew that the Trump administration is a big boost for the fossil fuel industry, as he has vowed to tap the oil, gas, and coal reserves in the US. However, he has always been against the concept of giving the taxpayers money to the loss-making clean tech companies.
While the Trump’s transition team members and his picks for top position have close ties to the fossil fuel industry, it appears that Mr. Musk is the man for Mr. Trump in his mission to create new jobs for the Americans. Tesla is the only American car manufacturer that produces all its products in the US using the American labor. Not to forget that Tesla’s upcoming mass-market vehicle, the Model 3, will be the most American-made vehicle with 95% of its parts built in the US.
While expanding rapidly over the last few years and creating massive employment in the US, Mr. Musk is now playing his job creation cards under the new administration that should be beneficial for the shareholders. While the entire Wall Street dumped Tesla shares after the election of Mr. Trump, there was one analyst who firmly believed that "Tesla is the poster child of Trump’s presidency:" Trip Chowdry of Global Equities Research.