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Tesla’s Musk says Congress should not approve Biden’s electric car project

Elon Musk, the executive president of Tesla, affirmed that Congress should not approve the bill of the government of Joe Biden to increase subsidies for electric vehicles (EVs) because the proposal would worsen the US budget deficit.

The billionaire businessman is stepping up criticism of the government and Democrats for a proposal to give electric vehicles made in the United States at union plants an additional $ 4,500 tax incentive.

Tesla and foreign automakers do not have unions at their factories in the United States.

“Honestly, it would be better if the bill doesn’t pass,” Musk said at the WSJ Council of Directors General Summit.

“I am literally saying that all subsidies be removed,” he said, adding that the government should “step aside and not impede progress.”

Tesla has benefited from a number of government grants and programs.

Since 2019, Tesla has generated more than $ 3 billion in revenue from the sale of regulatory credits to other automakers that don’t meet government emissions standards. The increased revenue helped Tesla start making annual profits last year.

The company acquired its assembly plant in Fremont, California, when the government restructured General Motors. Tesla also received a low-cost loan of $ 465 million from the Department of Energy, which it repaid early.

Tesla also benefited from a federal tax credit of $ 7,500 per vehicle. The credit was applied in full to the first 200,000 Teslas sold and then phased out.

In his comments Monday, Musk also reiterated his opposition to the Democrats’ proposal to tax billionaires.

“It makes no sense to deprive people who have shown great ability from the work of allocating capital and give it to, you know, an entity that has shown very poor ability to allocate capital, which is the government,” he said.

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