Tesla CEO Elon Musk has criticized the law that could benefit individual EV makers. Members of the House of Representatives proposed a $ 4,500 tax break on the purchase of electric vehicles from unionized companies on August 10, Insider reports.
Tesla’s competitors such as General Motors, Ford and Chrysler will benefit from the law. They are part of the United Auto Workers Union (UAW). Companies that are not unionized will be negatively affected by the law. Such enterprises include the American Tesla, as well as foreign automakers that are not part of the US trade unions. For example, Toyota and Honda opposed tax breaks. Toyota said the law discriminates against automakers for their decision not to unionize.
Musk spoke out against the new bill on his Twitter account. “It’s written by Ford / UAW lobbyists who build their electric vehicles in Mexico. It is unclear how this will benefit the American taxpayers, ”wrote the Tesla CEO.
One Twitter user wrote that US President Joe Biden should prioritize American-made cars. Musk responded to this comment by noting the official account of the head of state.
Tesla’s anti-union stance has led to tensions between the Biden administration and the company. In August, the president hosted an event for American electric vehicles that Tesla did not attend. Musk wrote about this on his Twitter account: “It’s strange that Tesla was not invited.”
Tesla has historically opposed unionization. The company did not welcome trade unionists among its employees either. Worker and Fair Future at Tesla campaigner Richard Ortiz was even fired for distributing union literature outside of office hours. However, the employee managed to challenge the decision of his superiors. The National Labor Relations Office of the United States ordered Elon Musk to remove the tweet criticizing the trade unions, as well as reinstate the activist at work and compensate him for the loss of earnings and benefits.