Business
Musk has Trump's ear, and that could help Tesla. Other EV makers? Maybe not so much
President-elect Donald Trump’s full-throated support for oil and gas drilling might be expected to send a chill through the electric vehicle industry were it not for a wild card in his fledgling administration: Tesla Chief Executive Elon Musk.
Trump has long railed against EV mandates and subsidies. Then came August, when Musk endorsed Trump and began pouring millions of dollars into the Trump campaign. Not long after, Trump said he was now in favor of some market share for EVs.
“I have to be, you know, because Elon endorsed me very strongly,” Trump said at a rally in Atlanta.
What does the Trump administration mean for the future of electric vehicles?
Clean transportation advocates are hopeful that Musk will continue to influence Trump’s position on EVs.
“If there’s a silver lining” to Trump’s victory, said Ramses Madou, chair of the Open Mobility Foundation, “it’s that Elon Musk can dial back on Trump’s anti-EV-ness.”
Here are some of the issues facing supporters of electric cars and trucks, and how Musk might influence them.
BUYER INCENTIVES
Reuters and other news organizations reported Friday that Trump plans to end the $7,500 consumer tax credit for EVs — a move that Musk supports.
After building his company on the back of federally financed buyer incentives, Musk believes Tesla no longer needs them — and that taking away the subsidies will mainly hurt his competitors.
“Take away the subsidies,” Musk wrote on X in July. “It will only help Tesla.”
Why would a company turn away such free money? Because Tesla is profitable, and the EV business at the traditional automakers as yet is not. Taking away buyer credits would hurt them more than it would hurt Tesla, whose EV market share has begun to drop in the face of new competition.
But there’s more to the story: So far this year, Tesla has posted $4.79 billion in profit. Of that, $2.07 billion came from government-required credits bought from Tesla by other automakers. That’s 43% of net income.
The EV federal credit system is simple in concept: Sell too many gasoline-powered cars, you accumulate deficits. If most of the vehicles you sell are EVs, you earn credits. To avoid government penalties, deficit holders must buy credits from companies like Tesla.
In other words, Tesla’s competitors are directly and dramatically boosting Tesla’s profits with rich flows of cash that they otherwise might have used in their own EV development.
How do EV buyer incentives fit in, and why might Musk want to see them gone? The fewer EVs other carmakers sell, the more credit money Tesla takes in as pure profit, boosting its own stock price and putting pressure on the shares of competitors. Since the election, Tesla stock is up 28%, closing at $320.72 on Friday. Most other automakers’ shares are stuck in neutral.
FEDERAL GRANTS
Tesla doesn’t just build passenger vehicles, it builds commercial trucks too. At least it’s trying to. To great fanfare, Musk introduced the Tesla Semi all-electric big rig in 2017. To date, the company has sold very few. It plans to begin mass production in 2026. Meanwhile, traditional truck builders are selling their own electric big rigs, and can’t keep up with demand.
The demand is high because of government mandates in California, sweetened with generous state and federal grants worth billions. Few would buy an electric truck today without government help. A new diesel truck typically costs $150,000 to $200,000. An all-electric version costs two to three times that amount.
Cutting off those federal grants could help Tesla against the competition. It would hurt major truck makers and could destroy electric truck startup companies, while giving the long-delayed Tesla Semi time to catch up.
The federal grant money is available to buyers of hydrogen fuel-cell trucks too. Musk has long belittled fuel-cell vehicles and Trump has often talked about hydrogen cars blowing up like an “atomic bomb.” That’s a gross exaggeration, as gasoline, battery and hydrogen vehicles all are subject to fire and explosion, albeit in different ways. Nonetheless, if Trump asks Musk’s opinion on dropping support for hydrogen vehicles, Musk is sure to egg him on.
TARIFFS
Musk’s conversations with Trump on tariffs could be tricky. Tesla runs a huge assembly plant in Shanghai, subject to Chinese government control. While showing little self-regulation on issuing blistering attacks on politicians he does not like, Musk has only kind words for Chinese leaders including President Xi Jinping.
Early this year, Musk seemed to support trade barriers against a potential influx of Chinese electric vehicles to the United States, saying Chinese companies could “demolish” other EV makers around the world. Within months, though, he changed his tune, opposing tariffs on EVs because “things that inhibit freedom of exchange or distort the market are not good.”
One of the main pillars of Trump’s economic policy is “beautiful tariffs” of 60% or more on Chinese goods. Business leaders, economists and even members of his own party have warned that such a policy could boost inflation and hurt economic growth.
“Much of the goods America imports are intermediate goods used in the production of other things,” thus lifting costs across the board for products manufactured in the U.S. and causing economywide “self-harm,” according to Jonathan Humphrey, senior economist at Benchmark Mineral Intelligence. He’s talking mainly about all the intermediary products that go into making cars, batteries and their enabling parts, even for goods made in America.
Trump is getting advice from all sides on the matter, and it remains to be seen whether decisions on tariffs go Musk’s way — or Xi’s.
CHARGING
Musk doesn’t talk much about federal funding for public EV charging stations, but it’s hard to see why he’d fight against it.
Biden’s bipartisan infrastructure bill devoted $5 billion to build public charging stations for cars and trucks every 50 miles along interstate highways. Tesla has built a widespread and dependable network of charging stations, and is now inviting owners of non-Tesla EVs to pay Tesla to use them, but more EV stations in more places will make things easier for owners of Teslas — and ease the need for Tesla to spend capital on building more of them.
Trump is unlikely to ax a program that will produce economic benefits across the country, in congressional districts red and blue. In any case, the money is already allocated, and “it would take an act of Congress to change that,” Debs Schrimmer of the U.S. Joint Office of Energy and Transportation said at the CoMotion LA mobility conference in Little Tokyo last week.
CERTAINTY
Musk has never been considered one to inject certainty into any situation. That adds to the tension around Trump’s economic plans.
Alex Gold, chief executive of BWD Strategic North America, is optimistic about the future for EVs, even under Trump.
“Rather than pulling back on clean energy, maybe he’ll just relax on the dirty [energy] so people can do both,” Gold said. “If Trump is pro-business, what business wants is certainty, and to make a U-turn right now would be surprising.”
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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