- US Transportation Secretary Pete Buttigieg defended the Biden Administration's proposed EV tax incentives.
- On Monday, Elon Musk called the incentives "unnecessary" and suggested the government ditch the bill.
- Buttigieg dissed Tesla's high prices and lack of union representation in his support of the Build Back Better Act.
US Transportation Secretary Pete Buttigieg pushed back on criticism from Elon Musk on the Biden Administration's support for electric cars, which the Tesla CEO deemed "unnecessary."
"These are things that don't happen on their own," Buttigieg said at The Wall Street Journal's CEO Council Summit on Tuesday. "They require policy attention, and that's part of our focus both in the charging network that is supported out of the infrastructure bill that the president signed, and the tax credits that will make these vehicles more affordable, that are proposed in Build Back Better."
On Monday, at the same summit, Musk said the Biden Administration should "just try to get out of the way" when it comes to adoption of electric cars in the US. In particular, Musk targeted the Build Back Better Act, which is currently pending a Senate vote.
"I would say honestly, I would just can this whole bill," Musk said on Monday, slamming the government for what he called "insane" federal spending. "Don't pass it. That's my recommendation."
The proposal could give other automakers an advantage in the US electric car industry — a market that Tesla has dominated. It includes a tax credit of up to $12,500 for electric vehicles, but Tesla would only be eligible for $7,500, as the rest is only available to vehicles that are assembled by union workers.
Musk has long opposed any efforts from United Auto Workers to unionize Tesla employees — an issue that Buttigieg addressed, pointing out that the Biden Administration wants to make sure that the vehicles are made in America and create good jobs for US citizens.
"Of course, we believe in the benefits of union jobs," he said.
Buttigieg said the US government is working to make sure the transition to electric cars happens quickly enough to address climate change concerns and that no one is left behind.
We want it "to happen in equitable terms that will actually reach the Americans who stand theoretically to benefit the most from EVs — low-income, urban Americans, rural drivers," Buttigieg said. "They only capture those benefits if they can afford to buy in the first place," he added, taking a jab at Tesla prices that largely operate within the luxury car market, despite Musk's goal of eventually selling a $25,000 EV.
Musk also criticized a provision in the bipartisan infrastructure law that includes $7.5 billion for charging stations. Tesla owners possess a significant advantage when it comes to charging infrastructure, as the automaker's Supercharger network accounts for the majority of charging stations in the US.
Musk has had a contentious relationship with the Biden Administration over the past year. Last month, President Joe Biden didn't mention Tesla in a public address on the future of electric cars, telling General Motors CEO Mary Barra she "electrified the entire automobile industry." Musk did not take kindly to the speech.
During the summer, Biden appeared to snub Musk when he failed to invite Tesla to the White House's EV summit.
At the time, White House press secretary Jen Psaki was asked whether Tesla was excluded from the event because its employees were not part of an automotive union.
"I'll let you draw your own conclusion," she said.
Spokespeople for Tesla and Buttigieg did not respond to Insider's request for comment.