The head of Hyundai (HYMTF, Financial) has been cheering Elon Musk's closeness to President-elect Donald Trump, saying it could be good for the U.S. auto industry despite concerns of favoritism for Tesla (TSLA, Financial). Munoz said that Musk's presence could keep the United States in top shape when it comes to competing with the global electric vehicle (EV) market against rising competition from China.
“This is positive for broader sector because I think having somebody so deeply connected to the EV world and EV industry in the U.S. is important,” Munoz said. Musk brushed off concerns over Musk using his Trump administration ties to benefit Tesla, saying it is to Musk's advantage to back the growth of the EV industry sector.
Critics have questioned Musk's role in Trump's administration as an aide to the Department of Government Efficiency. But critics say his support to end the $7,500 federal EV tax credit harms Tesla's critics' rivals—Hyundai, Ford, and General Motors—more than it benefits Tesla. Tesla has said the subsidy was superfluous and argued it 'would devastate' Tesla's competitors, a position recycled during Tesla's November earnings call.
But it added fuel to the debate when Vivek Ramaswamy, a cofounder of Musk's ruthless cost-cutting lean body, urged federal loans issued to Tesla's competitors, including Rivian and Stellantis, could receive greater scrutiny.
Munoz is positive that the industry is heading in the right direction and that talents like Musk's have a chance to propel U.S. EVs to the top of the world. However, the impact on EV innovation and competition under a Trump-era policy shift has yet to be seen as the auto sector braces for change.
