Biden Must Recognize That TSLA Stock Is America’s Best EV Bet

Not for the first time, Tesla (NASDAQ:TSLA) stock finds itself in the middle of a spat between two highly powerful people. This time, those individuals are Elon Musk and President Joe Biden. Although Biden has touted his belief in electric vehicles, such as through support for the Build Back Better legislation, Musk isn’t feeling the love.

A black Tesla (TSLA) Model S is parked between rows of charging stations.
Source: Grisha Bruev / Shutterstock.com

TSLA Stock’s Missing Driver

What does Elon Musk have to complain about?

Well, he’s not happy that Biden hasn’t acknowledged his electric vehicle company. Last week, the president tweeted out in support of the EV industry, mentioning General Motors (NYSE:GM) and Ford (NYSE:F) by name. Tesla didn’t get a shout out, and it didn’t take Musk long to respond.

While the Tesla CEO’s comment may have sounded lighthearted, it was clear he wasn’t happy. Adding fuel to the fire is the fact that in a video accompanying Biden’s tweet is a video of him with General Motors CEO Mary Barra.

In addition to the Twitter spat, there’s currently a petition trending on Change.org, asking Biden to acknowledge Tesla’s accomplishments.

This all raises one big question: Why would Biden praise General Motors and Ford over Tesla?

Why It Matters

The answer to the question above isn’t complicated. Ford and General Motors are staples of American industry. Biden remembers when Detroit was home to a thriving automotive industry. He’s claimed to be both a “car guy” and a “union guy.” Earlier this year, he was photographed driving in an electric pickup made by Ford as part of a campaign for his clean energy agenda. There was never much question that Biden was going to embrace EVs as the future of transportation. At times this pro-electric attitude has helped boost TSLA stock.

But Biden has never embraced Tesla in the same way he has Ford or GM. Its innovative track record speaks for itself, but so does its history of controversy. Additionally, Musk hasn’t exactly been friendly to Democratic politicians. He has criticized Sen. Elizabeth Warren over her stance on taxes and taken jabs at Sen. Bernie Sanders. While none of this posed any threat to TSLA stock, it likely didn’t win Musk many fans on Capitol Hill.

From a publicity standpoint, it might seem like the best course of action for Biden not to tout Tesla in the same way he has the more-established automakers. That said, Musk’s fan base is large and it is easily mobilized. At this point, it would make more sense for Biden to acknowledge the contributions that both the company and its leader have made to the American automotive industry. Tesla redefined electric transportation and forced America to completely reimagine the way that it drove.

Regardless of how much Ford or GM grow, Tesla will always be the automaker that arrived at the EV race first.

What It Means for Tesla

If Biden is the car guy he claims to be, he shouldn’t have a problem acknowledging the impact that Tesla’s work has had on the automotive industry. He also has touted the importance of building in America, and Musk has certainly done that. His factory in California turned out record numbers of electric vehicles in 2021, and Tesla is on track to do it again in 2022, even with the looming supply chain threats.

Musk likes publicity, and he would likely welcome an invitation to the White House. Such a gesture from Biden would likely boost TSLA stock. It’s time for him to publicly acknowledge the company that is the real leader of the electric vehicle race.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/02/biden-must-recognize-that-tsla-stock-is-americas-best-ev-bet/.

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