- Elon Musk has become a key advisor to President Donald Trump as a government efficiency tsar.
- Trump has moved to cut subsidies for EVs, which the Tesla CEO has embraced.
- Rivian CEO RJ Scaringe said Musk’s relationship with Trump could benefit the EV industry.
Rivian CEO RJ Scaringe told Business Insider that Elon Musk’s close proximity to President Donald Trump could benefit the electric vehicle industry.
“Tesla is the largest EV manufacturer in the United States. All that said, it’s good that there’s somebody who understands the electric vehicle space and technology and importance so well that’s close to President Trump,” Scaringe said of Musk. “I don’t think that’s a bad thing.”
Musk has become a key advisor to Trump, leading the Department of Government Efficiency, which aims to cut federal spending and regulations. The Tesla CEO has also made policy suggestions on his social media platform.
In a July X post, Musk called for the end of government subsidies for “all industries.” That same month, Musk said during an earnings call that doing so would “be devastating for our competitors and for Tesla slightly” but would help his company in the long run.
Musk and a White House spokesperson did not respond to a request for comment.
Trump on Monday signed an executive order calling for the removal of incentives for EV purchases. Scaringe said the EV industry would be fine without them.
The President previously attacked EVs, once calling them “too expensive” and discouraging people from buying them because of their range. His rhetoric around electric cars, however, softened after Musk’s endorsement.
“I’m for electric cars,” Trump said at a rally in Atlanta. “I have to be because Elon endorsed me very strongly.”
Scaringe said he doesn’t think Trump is “anti-EV.” Instead, Trump “just wants to allow consumers to choose,” he said.
The Rivian CEO is also confident that Trump would see EV companies like his as a net positive to the US, especially considering its race to electrification against China.
Days before Trump’s inauguration, Rivian closed on a $6.57 billion loan from the Department of Energy. The money will go into a new manufacturing facility in Georgia and add 7,500 jobs through 2030, the DOE said in a press release.
“I think some of this discussion forgets the fact that, when we talk about EVs and new technology, those jobs that are created in the United States are often in politically more Republican areas,” Scaringe said. “And I think the US needs it. Trump — he ‘s a businessman. And so he’s going to look at this and say, ‘We need these businesses to be successful.'”
Tesla benefited greatly from Trump’s electoral victory in November.
Following Trump’s win, Tesla’s stock surged 27% and pushed the company to a trillion-dollar market valuation. As a result, Musk’s wealth on paper ballooned to more than $400 billion by December.
