In response to former US President Donald Trump's promise to end the current Biden administration's "EV mandate" on his first day in office, Tesla CEO Elon Musk has expressed indifference towards the potential loss of specific electric vehicle (EV) subsidies. Musk's comments suggest that Tesla welcomes a market without government assistance for EVs.

The issue of electric vehicles has become a partisan talking point, and although Tesla is undeniably the leader in the US EV market, the Biden administration has largely ignored the company, possibly due to its non-unionized workforce. Trump, known for his generally anti-EV stance, had vowed to put a halt to the "EV mandate" in his address at the Republican National Convention, claiming it would save the auto industry from destruction and customers thousands of dollars per car.

However, despite the rhetoric from Trump, many people mistakenly believe that Tesla relies heavily on subsidies to survive. Musk took to social media to clarify this misconception, stating, "A surprising number of people think that Tesla survives on subsidies. That is true of our competitors, but not of Tesla."

Musk further reinforced his position in response to a question on social media, assuring a concerned user that "it will be fine." While his comments may draw criticism, there is evidence to support his statement. In 2018, Tesla triggered the phaseout of the $7,500 US EV federal tax credit after delivering its 200,000th vehicle. By 2020, Tesla's vehicles were sold without federal tax credits, and interestingly, the company experienced its first profitable year, generating $862 million in net profits.

It is worth noting that President Joe Biden signed the Inflation Reduction Act (IRA) in August 2022, which reinstated federal subsidies for eligible Tesla vehicles. However, Tesla had already proven its ability to thrive without depending on federal tax credits, as it was profitable at the time of the legislation and had begun delivering its Model Y to customers.

While it remains to be seen how Trump's plans may impact the EV market, Tesla's track record indicates that the company can sustain itself without substantial government assistance. Musk's nonchalant response to the potential removal of subsidies suggests that Tesla's focus lies in its innovative technology and competitive edge, rather than relying on financial incentives.