News
Elon Musk speaks up on EV subsidies and government spending: “Don’t pass it.”
Elon Musk spoke in an interview with the Wall Street Journal at the publication’s CEO Council Summit recently. At the summit, Musk covered many topics related to the companies he heads, including Tesla, SpaceX, and Neuralink. He also shared his opinions about the US government’s latest EV subsidy policy and spending habits.
Tesla and EV Subsidies
US President Joe Biden’s Build Back Better Act includes EV subsidies of up to $12,500 per electric vehicle. The US government hopes the tax incentives will encourage consumers to make the EV switch. The bill has passed in the US House of Representatives and is now under deliberation in the Senate.
Tesla could benefit from EV subsidies distributed by the Build Back Better Act as a car company that solely manufactures electric vehicles. Tesla hasn’t relied on tax incentives to drive sales in a long time as it became eligible for EV subsidies way back during the Obama administration. Musk probably surprised everyone at the summit when he advocated for zero EV and fossil fuel subsidies.
“It’s worth noting that the (electric) vehicle purchase tax credit, the $7500, Tesla stopped getting that two years ago. Whereas everyone else except for GM gets the $7500 tax credit. So all of our sales this year and last year had nothing to do with the tax credit because we’re no longer eligible because we’ve made so many electric cars. Tesla’s made roughly two-thirds of all the electric cars made in the United States. I’m not sure if most people are aware of that. So Tesla’s made roughly twice as many electric vehicles as everyone else has made. Honestly, I would just can this whole bill. Don’t pass it. That’s my recommendation,” Musk suggested.
Government Spending
Instead of subsidies for EVs and the fossil fuel sector, which received $5.9 trillion last year, the Tesla CEO suggested that the US government should optimize its spending habits.
“We spend so much money. The federal budget deficit is insane. You know, it’s like $3 trillion, federal expenditures are $7 trillion, federal revenue is $4 trillion. That’s a $3 trillion difference. If this a company, it will be a $3 trillion loss. I don’t know if we should be adding to that loss. That seems pretty crazy. Something’s gotta give. You can’t just spend $3 trillion more than you own every year and don’t expect something bad to happen. You know, this is not good,” Musk said.
-->But Musk doesn’t seem to wholly disagree with Biden’s Infrastructure Investment and Jobs Act. He believes that the US government should put funds into specific infrastructure to support the growing number of vehicles on the road and the increase of congestion caused by traffic.
“I think we generally could have better airports, better highways, and I think, especially in cities that are congested, there should be something that can deal with extreme traffic, which I think is a combination of double deckers for highways and building tunnels. But if we don’t do something, we’ll be stuck in traffic forever. And as autonomous vehicles come to the fore… there will be more cars on the road, and the traffic will get much worse. So we really need to do some combination of tunnels, and double deckers on freeways… I don’t see a strong effort in this direction,” he said.
Musk’s venture into tunneling with The Boring Company addresses the traffic congestion seen in many cities. Las Vegas already as a Boring Company Loop system connecting the three halls in its Convention Center and is planning another tunnel system with TBC with stations at popular tourist spots. Fort Lauderdale has also started negotiations with The Boring Company for a potential loop to decrease traffic congestion.
The H.R. 3684 , Infrastructure Investment and Jobs Act was signed into law by President Biden on November 15. “This law makes this the most significant investment in roads and bridges in the past 70 years. It makes the most significant investment in passenger rail in the past 50 years and in public transit ever,” said President Biden during the signing.
The Teslarati team would appreciate hearing from you. If you have any tips, reach out to me at maria@teslarati.com or via Twitter @Writer_01001101.
-->
News
Tesla’s new Holiday perk is timed perfectly to make FSD a household name
Tesla AI4 owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season.
Tesla quietly rolled out a free Full Self-Driving (Supervised) trial for roughly 1.5 million HW4 owners in North America who never bought the package, and the timing could very well be genius.
As it turns out, the trial doesn’t end after 30 days. Instead, it expires January 8, 2026, meaning owners get FSD (Supervised) through Christmas, New Year’s Eve and well into the post-holiday travel season. This extended window positions the feature for maximum word-of-mouth exposure.
A clever holiday gift
Tesla watcher Sawyer Merritt first spotted the detail after multiple owners shared screenshots showing the trial expiring on January 8. He confirmed with affected users that none had active FSD subscriptions before the rollout. He also observed that Tesla never called the promotion a “30-day trial,” as the in-car message simply reads “You’re Getting FSD (Supervised) For the Holidays,” which technically runs until after the new year.
The roughly 40-day period covers peak family travel and gatherings, giving owners ample opportunity to showcase the latest FSD V14’s capabilities on highway trips, crowded parking lots and neighborhood drives. With relatives riding along, hands-off highway driving and automatic lane changes could become instant conversation starters.
Rave reviews for FSD V14 highlight demo potential
FSD has been receiving positive reviews from users as of late. Following the release of FSD v14.2.1, numerous owners praised the update for its smoothness and reliability. Tesla owner @LactoseLunatic called it a “huge leap forward from version 14.1.4,” praising extreme smoothness, snappy lane changes and assertive yet safe behavior that allows relaxed monitoring.
-->Another Tesla owner, @DevinOlsenn, drove 600 km without disengagements, noting his wife now defaults to FSD for daily use due to its refined feel. Sawyer Merritt also tested FSD V14.2.1 in snow on unplowed New Hampshire roads, and the system stayed extra cautious without hesitation. Longtime FSD tester Chuck Cook highlighted improved sign recognition in school zones, showing better dynamic awareness. These reports of fewer interventions and a more “sentient” drive could turn family passengers into advocates, fueling subscriptions come January.
Elon Musk
Elon Musk predicts AI and robotics could make work “optional” within 20 years
Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.
Elon Musk stated that rapid advances in artificial intelligence and robotics could make traditional work unnecessary within two decades.
Speaking on entrepreneur Nikhil Kamath’s podcast, Musk predicted that machines will soon handle most forms of labor, leaving humans to work only if they choose to.
Work as a “hobby”
During the discussion, Musk said the accelerating capability of AI systems and general-purpose robots will eventually cover all essential tasks, making human labor a choice rather than an economic requirement. “In less than 20 years, working will be optional. Working at all will be optional. Like a hobby,” Musk said.
When Kamath asked whether this future is driven by massive productivity growth, Musk agreed, noting that people will still be free to work if they enjoy the routine or the challenge. He compared future employment to home gardening, as it is something people can still do for personal satisfaction even if buying food from a store is far easier.
“Optional” work in the future
Elon Musk acknowledged the boldness of his claim and joked that people might look back in 20 years and say he was wrong. That being said, the CEO noted that such a scenario could even happen sooner than his prediction, at least if one were to consider the pace of the advancements in AI and robotics.
-->“Obviously people can play this back in 20 years and say, ‘Look, Elon made this ridiculous prediction and it’s not true,’ but I think it will turn out to be true, that in less than 20 years, maybe even as little as ten or 15 years, the advancements in AI and robotics will bring us to the point where working is optional,” Musk said.
Elon Musk’s comments echo his previous sentiments at Tesla’s 2025 Annual Shareholder Meeting, where he noted that Optimus could ultimately eliminate poverty. He also noted that robots like Optimus could eventually provide people worldwide with the best medical care.
Elon Musk
Elon Musk reiterates why Tesla will never make an electric motorcycle
Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more.
Tesla CEO Elon Musk preemptively shut down speculations about a Tesla road bike once more, highlighting that the electric vehicle maker has no plans to enter the electric motorcycle market.
Musk posted his clarification in a post on X.
Musk’s reply to a fun AI video
X user @Moandbhr posted an AI video featuring the Tesla CEO on the social media platform, captioning it with “Mr. Elon Musk Just Revealed the Game-Changing Tesla Motorcycle.” The short clip depicted Musk approaching a sleek, single-wheeled vehicle, stepping onto it, and gliding off into the distance amid cheers. The fun video received a lot of traction on X, gaining 3.1 million views as of writing.
Musk replied to the post, stating that a Tesla motorcycle is not going to happen. “Never happening, as we can’t make motorcycles safe. For Community Notes, my near death experience was on a road bike. Dirt bikes are safe if you ride carefully, as you can’t be smashed by a truck,” Musk wrote in his reply.
Musk’s Past Comments on Two-Wheelers
Musk also detailed his reservations about motorcycles in a December 2019 X post while responding to questions about Tesla’s potential ATV. At the time, he responded positively to an electric ATV, though he also opposed the idea of a Tesla road-going motorcycle. Musk did state that electric dirt bikes might be cool, since they do not operate in areas where large vehicles like Class 8 trucks are present.
-->“Electric dirt bikes would be cool too. We won’t do road bikes, as too dangerous. I was hit by a truck & almost died on one when I was 17,” Musk wrote in his post.
Considering Musk’s comments about dirt bikes, however, perhaps Tesla would eventually offer a road bike as a recreational vehicle. Such a two-wheeler would be a good fit for the Cybertruck, as well as future products like the Robovan, which could be converted into an RV.
Tesla’s new Holiday perk is timed perfectly to make FSD a household name
Elon Musk predicts AI and robotics could make work “optional” within 20 years
