Musk criticizes Ford for making electric cars in Mexico | Benzinga Spain

3 min of reading

The CEO of Tesla Inc (NASDAQ:TSLA), Elon Musk, criticized on Sunday Ford Motor Co (NYSE: F) for making its battery-powered Mustang Mach-E models in Mexico rather than the United States.

What has happened

Musk’s cause of contention was related to a Whole Mars Blog tweet that these new union-built electric vehicles could get a $ 4,500 tax incentive, an 80% increase, if a new proposal is voted on. .

Under a 10-year proposal by Democratic lawmakers in the US House of Representatives, electric cars made by unions will receive higher subsidies.

The move is expected to favor traditional automakers like Ford, General Motors Co (NYSE: GM) and others who have workers represented by United Auto Workers.

By contrast, Tesla workers are not represented by any union and the Palo Alto, California-based company has been known to pay its employees more than the minimum wage.

Musk shared a Bloomberg News report from four months ago, which pointed out that Ford, based in Dearborn, Michigan, has built more electric Mustang Mach-Es in a plant in Mexico than traditional internal combustion engine Mustangs made in a factory in Michigan.

The billionaire businessman claimed that the Bloomberg article was written by a lobbyist for Ford and the United Auto Workers, since making those cars outside the United States does not favor American taxpayers.

As of May this year, Ford had produced a total of 27,816 electric Mustang Mach-Es compared to 26,089 copies of the traditional internal combustion engine Mustang.

The automaker has maintained that trend so far this year. The Mustang Mach-Es eclipsed production figures for the traditional internal combustion model, having made 45,826 vehicles so far this year, compared to 42,070 Mustangs that have been made since the beginning of the year, company data shows. .

Minutes later, Musk agreed with a fan tweet that the Tesla is the “most American” car in existence.

Because it is important

Apart from Tesla, Toyota Motor Corp. (NYSE: TM) and Rivian Automotive Inc, backed by Inc (NASDAQ: AMZN) and Ford are auto companies whose staff is not represented by any union. According Reuters, Ford and Honda Motor Co (NYSE: HMC) have harshly criticized the proposal. Toyota said the plan discriminates “against American workers in the auto industry for their decision not to unionize.”

The bill will be voted on Tuesday.

The movement of prices

Tesla shares closed 2.46% lower at $ 736.27 on Friday, while Ford’s closed 0.63% lower at $ 12.68.

Photo: courtesy from Heisenberg Media via Wikimedia

Article: Soure