Elon Musk Furious After New Law Boosts Union Electric Vehicle Companies

(PresidentialInsider.com)- Elon Musk is not happy about a new proposed bill that could be a huge benefit to manufacturers of electric vehicles that work with unions.

The bill in question, proposed last Friday by Democrats in the House, would give out $4,500 in tax incentives to consumers who purchase electric vehicles that are assembled at facilities within the U.S., as long as they have a union.

Musk, the CEO of Tesla, tweeted over the weekend that the bill was engineered by lobbyists representing the United Auto Workers union and Ford. His tweet linked to an article published by Bloomberg that detailed the production of Ford’s Mustang Mach-E cars at its plant in Mexico.

The tweet he sent also read:

“This is written by Ford/UAW lobbyists, as they make their electric car in Mexico. Not obvious how this serves American taxpayers.”

Other users tweeted responses to Musk’s message, criticizing how crazy the proposal is. For example, @ajtourville wrote:

“New even more corrupt plan will give subsidies for EVs sold through a dealership.”

And the Whole Mars Catalog wrote:

“My mouth was on the floor that they expanded it to $4,500 for Unions and reduced the American made to only $500. The $2,500 for unions was already ridiculous. But to expand it to $4,500 in the new proposal?!? They are clearly targeting one company here. @elonmusk”

Tesla has opposed unionizing its workforce in the past, and it’s likely to lose out if the bill is passed. On the other side, companies such as Chrysler, Ford and GM are bound to benefit from the $4,500 tax incentive that is being offered to people who purchase their electric vehicles.

Musk didn’t have any evidence for his claims that the bill was written by lobbyists for both Ford and the UAW. Business Insider reached out to a spokesperson for the Union, but they didn’t respond directly. Instead, they referred to a statement released by Ray Curry, the president of the UAW, which praised the proposed bill, which is being led by Democratic Representative Dan Kildee of Michigan.

In that statement, Curry said:

“I commend Representative Kildee for crafting legislation to protect and create more good paying union jobs for years to come. Rep. Kildee’s provision would go a long way in supporting good paying union jobs in EV auto sector that President Biden has championed.”

In addition to the $4,500 tax incentive, there’s another $7,500 base consumer incentive for every electric vehicle that is sold in the United States. It would also allow cars that are not made in the U.S. to claim that particular incentive for up to five years. This is how Ford could take advantage even though their electric cars are assembled overseas in Mexico.

This isn’t the first sign of a rift between Tesla and the Biden administration, though. Biden held an event in August that celebrated electric vehicles made in America. Absent from that event was Tesla.

At the time, Musk tweeted that it was “odd that Tesla wasn’t invited.”