Donald Trump trashes electric cars and again shows he knows nothing about them
Donald Trump has talked about electric cars in a new interview, and as usual, he has decided to trash them and show that he doesn’t know much about them.
Disclaimer: we don’t like to get too political at Electrek. We are biased toward electric vehicles and we do like policies that encourage them, especially those that incentivize them in a way that represents their benefits for the environment. Since Trump has a real chance of becoming president again, it’s important to cover his views on electric vehicles.
Historically, the former president has been all over the place with his comments on electric vehicles.
Most of the time, in his rallies, he has brought them up as a talking point to ridicule them – focusing on the premise that “don’t go far” and “charging is a pain”. He went as far as calling them a “hoax”.
But he has also claimed that he is “all for electric cars” and during his 2020 campaign, he tried to take credit for incentives put in place during the Obama administration.
In practice, the former president was trying to put in place policies to slow down electric car adoption – at the request of some automakers, to be fair. The Trump administration attempted to eliminate the tax credit for electric vehicles in the original version of their 2020 budget, though the provision never passed.
Furthermore, Trump was actively seeking to roll back vehicle emission standards that were encouraging automakers to produce more electric cars.
Now, with the 2024 election approaching, and Trump being almost guaranteed to clinch the Republican primaries, he has again been commenting on electric vehicles.
In a new interview with CNBC yesterday, Trump started discussing electric cars when asked about Elon Musk:
The former president suggested that he is friends with Musk and that he “helped him” when he was president, and they mainly disagree about one “minor subject”: electric cars.
Trump continues:
“I’m all for electric cars but you have to have all of the alternatives also. First of all they don’t go far, they cost too much, and they’re all going to be made in China.”
The likely republican candidate went on to claim that the US electric grid cannot support the rise and electric vehicles. He goes as far as claiming that it is an impossibility to go all-electric:
“It’s not even a possibility to go all-electric.”
The president is seemingly not aware that electric vehicles largely charge at night when electricity production far outpaced demand. EVs are a great example of a “controllable load” that, in fact, can help strengthen the US grid – not weaken it.
Electrek’s Take
Despite EVs being my passion, I could potentially concede that electric cars are a “minor subject” for a president or candidate.
However, manufacturing and jobs are not a minor subject, and cars and weapons are among the last major things that America produces and exports.
If you want to former to remain the case, you need a strong EV industry in the US. That’s a fact. The industry globally is moving to electric vehicles as they, combined with renewable energies, are the solution to decarbonize the transportation sector.
That’s a fact, and America is falling behind.
Now, Trump is right that China is leading the way there, but I don’t see how this is a reason to slow down EV adoption in the US. On the contrary, you will let Chinese automakers run with the market.
The US needs a strong domestic EV market to support American automakers’ own EV production, and then it has a chance at competing on the global stage. I think that’s pretty straightforward.
As for EVs sold in the US being made in China, I think the IRA has been very useful in preventing that. There has been a record level of investment from automakers, including Chinese-backed automakers like Volvo and Polestar, to build factories in the US to produce EVs.
If that was a real concern for Trump, which he makes it sound like it was, he should thank the Biden administration which has already taken a protectionist approach on that front.
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Thanks to Trump’s repeated executive order attacks on US clean energy policy, nearly $8 billion in investments and 16 new large-scale factories and other projects were cancelled, closed, or downsized in Q1 2025.
The $7.9 billion in investments withdrawn since January are more than three times the total investments cancelled over the previous 30 months, according to nonpartisan policy group E2’s latest Clean Economy Works monthly update.
However, companies continue to invest in the US renewable sector. Businesses in March announced 10 projects worth more than $1.6 billion for new solar, EV, and grid and transmission equipment factories across six states. That includes Tesla’s plan to invest $200 million in a battery factory near Houston that’s expected to create at least 1,500 new jobs. Combined, the projects are expected to create at least 5,000 new permanent jobs if completed.
Michael Timberlake of E2 said, “Clean energy companies still want to invest in America, but uncertainty over Trump administration policies and the future of critical clean energy tax credits are taking a clear toll. If this self-inflicted and unnecessary market uncertainty continues, we’ll almost certainly see more projects paused, more construction halted, and more job opportunities disappear.”
March’s 10 new projects bring the overall number of major clean energy projects tracked by E2 to 390 across 42 states and Puerto Rico. Companies have said they plan to invest more than $133 billion in these projects and hire 122,000 permanent workers.
Since Congress passed federal clean energy tax credits in August 2022, 34 clean energy projects have been cancelled, downsized, or shut down altogether, wiping out more than 15,000 jobs and scrapping $10 billion in planned investment, according to E2 and Atlas Public Policy.
However, in just the first three months of 2025, after Trump started rolling back clean energy policies, 13 projects were scrapped or scaled back, totaling more than $5 billion. That includes Bosch pulling the plug on its $200 million hydrogen fuel cell plant in South Carolina and Freyr Battery canceling its $2.5 billion battery factory in Georgia.
Republican-led districts have reaped the biggest rewards from Biden’s clean energy tax credits, but they’re also taking the biggest hits under Trump. So far, more than $6 billion in projects and over 10,000 jobs have been wiped out in GOP districts alone.
And the stakes are high. Through March, Republican districts have claimed 62% of all clean energy project announcements, 71% of the jobs, and a staggering 83% of the total investment.
A full map and list of announcements can be seen on E2’s website here. E2 says it will incorporate cancellation data in the coming weeks.
Read more: FREYR kills plans to build a $2.6 billion battery factory in Georgia
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Tesla has reportedly delayed the launch of its new “affordable EV,” which is believed to be a stripped-down Model Y, in the United States.
Last year, Tesla CEO Elon Musk made a pivotal decision that altered the automaker’s direction for the next few years.
The CEO canceled Tesla’s plan to build a cheaper new “$25,000 vehicle” on its next-generation “unboxed” vehicle platform to focus solely on the Robotaxi, utilizing the latest technology, and instead, Tesla plans to build more affordable EVs, though more expensive than previously announced, on its existing Model Y platform.
Musk has believed that Tesla is on the verge of solving self-driving technology for the last few years, and because of that, he believes that a $25,000 EV wouldn’t make sense, as self-driving ride-hailing fleets would take over the lower end of the car market.
However, he has been consistently wrong about Tesla solving self-driving, which he first said would happen in 2019.
In the meantime, Tesla’s sales have been decreasing and the automaker had to throttle down production at all its manufacturing facilities.
That’s why, instead of building new, more affordable EVs on new production lines, Musk decided to greenlight new vehicles built on the same production lines as Model 3 and Model Y – increasing the utilization rate of its existing manufacturing lines.
Those vehicles have been described as “stripped-down Model Ys” with fewer features and cheaper materials, which Tesla said would launch in “the first half of 2025.”
Reuters is now reporting that Tesla is seeing a delay of “at least months” in launching the first new “lower-cost Model Y” in the US:
Tesla has promised affordable vehicles beginning in the first half of the year, offering a potential boost to flagging sales. Global production of the lower-cost Model Y, internally codenamed E41, is expected to begin in the United States, the sources said, but it would be at least months later than Tesla’s public plan, they added, offering a range of revised targets from the third quarter to early next year.
Along with the delay, the report also claims that Tesla aims to produce 250,000 units of the new model in the US by 2026. This would match Tesla’s currently reduced production capacity at Gigafactory Texas and Fremont factory.
The report follows other recent reports coming from China that also claimed Tesla’s new “affordable EVs” are “stripped-down Model Ys.”
The Chinese report references the new version of the Model 3 that Tesla launched in Mexico last year. It’s a regular Model 3, but Tesla removed some features, like the second-row screen, ambient lighting strip, and it uses fabric interior material rather than Tesla’s usual vegan leather.
The new Reuters report also said that Tesla planned to follow the stripped-down Model Y with a similar Model 3.
In China, the new vehicle was expected to come in the second half of 2025, and Tesla was waiting to see the impact of the updated Model Y, which launched earlier this year.
Electrek’s Take
These reports lend weight to what we have been saying for a year now: Tesla’s “more affordable EVs” will essentially be stripped-down versions of the Model Y and Model 3.
While they will enable Tesla to utilize its currently underutilized factories more efficiently, they will also cannibalize its existing Model 3 and Y lineup and significantly reduce its already dwindling gross margins.
I think Musk will sell the move as being good in the long term because it will allow Tesla to deploy more vehicles, which will later generate more revenue through the purchase of the “Full Self-Driving” (FSD) package.
However, that has been his argument for years, and it has yet to pan out as FSD still requires driver supervision and likely will for years to come, resulting in an extremely low take-rate for the $8,000 package.
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Environment
Podcast: how Elon killed Tesla Model 2, global EV sales surge, and Chinese EVs keep killing it
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss how Elon Musk killed Tesla Model 2, global EV sales surging, how Chinese EVs keep killing it, and more.
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