Elon Musk Warns That Biden’s Recent Move Will Destroy the EV Industry
Elon Musk warns that a recent decision by U.S. President Joe Biden could force the EV industry to collapse.
Joe Biden recently vetoed an electric vehicle bill that aimed to ensure the nation’s EV charging stations, scheduled to be built using taxpayers’ money, utilized American components.
Joe Biden Vetoes Republican Measure
On Jan. 24, it was announced that U.S. President Joe Biden vetoed a bill brought forth by Republicans to block a White House waiver.
![US President Joe Biden speaks to a crowd in Columbia, South Carolina](https://images.savvydime.com/2024/01/8d995341-img12.jpg)
Source: Sean Rayford/Getty Images
Had it gone through, it would have restricted the use of foreign materials in the construction of U.S. EV charging stations built using taxpayers’ money (via The Associated Press).
U.S. President Aims to Avoid Harming Jobs
When speaking about his decision to veto the proposal brought forth by the GOP, Biden said it could have harmed the EV industry.
![A lone worker in a car manufacturing plant works on the rear end of a vehicle](https://images.savvydime.com/2024/01/b6dd7844-img17.jpg)
Source: Freepik
It “would eliminate the domestic manufacturing requirement for electric vehicle chargers, thereby harming domestic manufacturing and American jobs,’’ said Biden.
Republicans Strongly Oppose Biden's Decision
Biden’s decision caused great controversy among Republicans and other prominent figures in the electric vehicle industry, including Elon Musk.
![Elon Musk gives a speech on stage wearing a black suit jacket](https://images.savvydime.com/2024/01/ab8b1545-img22.jpg)
Source: Omar Marques/Getty Images
Elon Musk warned the decision to veto the GOP proposal could have severe consequences for the American EV sector.
GOP Try to Overturn 'Buy America'
U.S. Sen. Marco Rubio and a team of lawmakers created a resolution to overturn the Department of Transportation’s “Buy America” requirements.
![Senator Marco Rubio pictured during a Relations Committee meeting](https://images.savvydime.com/2024/01/09a87cc3-img26.jpg)
Source: Drew Angerer/Getty Images
Many argue the restrictions favor Chinese manufacturers and suppliers in the EV sector.
The 'Buy America' Policy
If Biden’s veto stands, the 2023 policy, which requires FHWA-funded EV chargers to be made in the U.S., will continue.
![Electric vehicle charging stations in the center of a city](https://images.savvydime.com/2024/01/c4ffb73b-img30.jpg)
Source: Freepik
However, starting July 1, 2024, only 55% of the cost of components for the electric vehicle charging stations must be sourced in America, per Engineering News-Record.
Backers of the GOP Bill Speak Out
According to many of the Republicans who supported the vetoed bill, the door is now open to allow manufacturers to use American taxpayer’s money on Chinese parts.
![A photograph of an electric vehicle charging station and two vehicles in close proximity](https://images.savvydime.com/2024/01/d42211b3-img36.jpg)
Source: Freepik
Many Republicans argue the electric vehicle charging station infrastructure should be built using solely American parts and manufacturing.
Marco Rubio Calls Out Biden
Sen. Rubio, who played a significant role in the creation of the vetoed bill, argued the Biden policy “hurts American companies and empowers foreign adversaries, like China, to control our energy infrastructure.”
![Sen. Marco Rubio pictured as he speaks to various reporters](https://images.savvydime.com/2024/01/d725dc7f-img41.jpg)
Source: Drew Angerer/Getty Images
He continued, “We should never use American dollars to subsidize Chinese-made products.”
Build American Stations with American Materials
Sen. Rubio expressed his desire to see the use of American components and manufacturing in the construction of EV charging stations.
![Numerous vehicles pictured charging at an electric vehicle charging station](https://images.savvydime.com/2024/01/fa4b3893-img46.jpg)
Source: Freepik
“If we’re going to spend $5 billion of taxpayer money to build electric vehicle charging stations for the United States, it should be made by Americans in America using American products,” said Sen. Rubio, per The Associated Press.
Biden Stands Strong in Decision
When speaking during a press conference, Biden remained sure of his decision to veto the GOP bill.
![President Biden pictured in a blue sweater as he shakes hands with a man at a barbershop](https://images.savvydime.com/2024/01/6e235495-img51.jpg)
Source: @MikeSington/X
“It would not only thwart the collective goal of the Congress and the administration to establish a domestic EV charger manufacturing industry, but it would also delay the significant progress being made by my Administration and the States in establishing the EV charging network,” said Biden (via MSN).
Elon Musk Warns of Repercussions
Elon Musk, one of many influential figures in the EV industry, warns of potential repercussions due to Biden’s action.
![Elon Musk pictured as he pulls an unusual face during a talk](https://images.savvydime.com/2024/01/0244a97f-img56.jpg)
Source: Win McNamee/Getty Images
“If there are no trade barriers established, they will pretty much demolish most other car companies in the world,” he said. “They’re extremely good.”
China’s Grip on the EV Market
Ross Gregory, a partner at Melbourne-based consultant New Electric Partners, also spoke out about the grip China has over the EV sector.
![A person is pictured as they hold an enormous EV charger cable](https://images.savvydime.com/2024/01/590ef14b-img61.jpg)
Source: Freepik
“The completeness and resilience of China’s multi-decade state-directed battery materials processing infrastructure build-out is biting hard,” said Ross Gregory (via MSN).