Elon Musk says he's not donating $45M a month to Donald Trump, clarifies what was reported 'is simply not true'

Tesla CEO Elon Musk has clarified that he is not donating $45 million a month to support Donald Trump's campaign.

Tesla CEO Elon Musk has clarified that he is not donating $45 million a month to support Donald Trump's campaign. He denied a report by The Wall Street Journal that said he would commit $45 million per month to a political action committee dedicated to fighting for Trump's election win.

Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023. REUTERS/Gonzalo Fuentes/File Photo (REUTERS)

Denying the report, Musk told conservative philosopher Jordan Peterson in an interview on X that “what’s been reported in the media is simply not true.” However, Musk clarified that he still supports Trump and praised the former president for showing “great courage” in surviving an assassination attempt at a Pennsylvania rally. Following the attack, Musk endorsed Trump.

Musk said he was not donating $45 million monthly to Trump, but has established a PAC – The America PAC – a legal entity that can get funding which can be used to support political campaigns. This is not the same as directly donating to candidates.

Elon Musk shrugs off Donald Trump's anti-EV policies

Musk also said on Tuesday that Trump's potential removal of support for electric vehicles would hurt other automakers more than the Austin, Texas-based firm.

"It would be devastating for our competitors, and it would hurt Tesla slightly but long term probably actually helps Tesla would be my guess," Musk said in a post-earnings conference call after the EV maker reported its lowest profit margin in more than five years.

Former President Trump, the Republican candidate supported by Musk, has been critical of the Biden administration's EV policies and has said that he will "end the electric vehicle mandate" if he wins office.

Trump has not explained the plan in detail.

Musk said any Trump removal of subsidies, and the resulting impact on Tesla car sales was not crucial because Tesla is an artificial intelligence company focused on self-driving technology.

"The value of Tesla overwhelmingly is autonomy. These other things are in the noise relative to autonomy," Musk said.

Musk's support for Trump created some confusion among Tesla fans who questioned how his election would help the EV company.

Trump's pick for vice president, JD Vance, last year introduced a bill to eliminate EV subsidies and replace them with a credit to promote gas-powered vehicles, though it has virtually no chance of passing in the current Congress.

Musk said in a post on X last week, "Take away the subsidies. It will only help Tesla. Also, remove subsidies from all industries!"

In his acceptance speech at the Republican Party's convention last week in Milwaukee, Trump said his administration would slap tariffs of 100% to 200% on cars made in Mexico to make them "unsellable" in the United States.

Musk said on Tuesday the EV maker has paused plans for a plant in Mexico and would reassess investing in a new gigafactory in the country after the U.S. presidential election.

"Trump has said that he will put heavy tariffs on vehicles produced in Mexico so it doesn't make sense to invest in Mexico," he said.

Musk said Tesla is increasing capacity at its existing factories significantly and plans to produce robotaxis at its factory in Texas.

(With Agency Inputs)