As we all know, Joe Biden won the US election of 2020. Almost every person observed the election very closely because this US election affects the whole world in almost every aspect, especially on security and economic ground. Now, most of the multinational companies are totally dependent on Biden White House policies.
Most importantly, how these policies will going to affect their business. Biden White House` has planned to build an electric vehicle charging industry, which will create almost 1 million jobs in the US auto industry. This policy is fascinating for Tesla and other electric vehicle companies. But at the same time, some of his policies are acting against them. In this sector, Tesla is one of the biggest companies to get affected the most.
Let me tell you in brief about Tesla,
Tesla was founded in 2003 by engineers in California. It is an electric vehicle and clean energy-based company which produces electric cars. At present, Elon Musk is the Ceo of the company.
How is Biden White House going to affect these companies?
Biden decided to invest around 400 billion dollars in clean energy programs, including advanced battery technology and electric vehicles.
Biden White House has also promised to support states and local officials for building a 50000 charging station by 2030. He wants to encourage the consumer to buy electric vehicles by subsidizing 7500 dollars on the first 20000 vehicles that the company will sell. He has also decided to set up a program in which people exchange their old polluting car for an electric vehicle. The overall cost of the program is 450 billion dollars and it will replace 63 million vehicles.
He also stated that they are planning to surpass China in electric vehicle manufacturing. This will also include the manufacturing of parts and materials. He adds all these programs will boom the auto industry. It will produce around 1 million jobs. His policies will also benefit the worker’s union. He is also going to bring reform in the Tumps tax system. The main purpose is to make the richest person pay more fairly.
This will directly be going to affect Elon musk. The partnership of Musk and Biden is crucial for the auto sector, especially the electric vehicle. Musk must support the US government to achieve the plan of green energy. This will also benefit in solving the trade war problem with China, which restricts the import and export system.
Now we will discuss the problems
Biden is trying to strengthen the worker’s union, which is currently not present in the US manufacturing plant, especially in Tesla. Tesla always has clashed with the National Labor Relation board. It was found that tesla is violating national labor laws. The government is also bringing some changes to regulate the working of Tesla and its CEO, Musk.
Auto safety regulators NHTSA and the FTC has found that Tesla’s Autopilot, enhanced autopilot, and Self-driven car is not fully automatic. It means they are misleading their customers. Tesla is always against workers’ unions because they think it will hamper their productivity. In 2019 it was found that the company has illegally threatened the union members within their workforce.
Tesla also enlisted the non-professional driver to test its Fully Self Driving System software. Such an act by tesla puts the lives of people at risk, which is not accepted. NTSB reported that such an act has led to a car crash which has taken the life of Apple engineer Walter Huang near Mountain View, California, in 2018. Biden is also putting effort into the purchase of made in America vehicles. This will create a problem for many companies such as Ford, who plan to build their future vehicles in Mexico and Canada.
Here we can see that Biden’s priority is to strengthen the worker and produce employment opportunities. Some of his policies give power to workers’ unions, while others give companies and manufacturers power. The production of an electric vehicle is essential for the mission of clean energy. Some policies, such as subsidizing taxes, setup of the power station, etc., will act as a fortune for the companies.
It will be interesting to see how government tesla will solve the problems. This partnership is also very much important for other companies. They must try to achieve the goal of clean energy together.
But one thing is clear that this will boom the electric vehicle industry worldwide.