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Tesla Stock Gains After Musk Disses Biden's EV Subsidies

Tesla shares are set to snap a four-day losing streak after Elon Musk says Congress should not approve the Biden infrastructure bill that includes EV subsidies.

Tesla  (TSLA) - Get Free Report stock appeared set to snap a four-day losing streak Tuesday after outspoken CEO Elon Musk said the Congress should not approve President Joe Biden’s $1 trillion Build Back Better bill that includes subsidies for electric vehicles.

Musk said Monday that the Congress should not approve the Biden administration's bill to boost subsidies for EVs, saying the Democrat-led proposal to give union-made, U.S.-built electric vehicles an additional $4,500 tax incentive would worsen the country's budget deficit.

"Honestly, it might be better if the bill doesn't pass," Musk said at a Wall Street Journal-held CEO Council Summit.

"I'm literally saying get rid of all subsidies," the self-titled Technoking of Tesla said, adding that the government “…should I think just try to get out of the way and not impede progress."

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Tesla received $400 million in federal loans and bailout support via the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program back in 2010. However, that amount was repaid in full with interest in May 2013, almost a decade early.

More recently, the electric car company withdrew its request to the German government for 1.14 billion euros ($1.3 billion) aid to build an almost-completed battery factory near Berlin.

Musk, the world's richest person on paper, on Monday also reiterated opposition to a proposal by Democrats to tax billionaires. 

"It does not make sense to take the job of capital allocation away from people who have demonstrated great skill ... and give it to, you know, an entity that has demonstrated very poor skill in capital allocation, which is the government," Musk said.

Tesla and SpaceX boss Musk has been critical of President Biden, dubbing the White House as “not the friendliest administration” after his company was snubbed from participating in a car-makers’ summit in late summer.

Shares of Tesla were up 3.63% at $1,045.66 at last check. Over the past four trading days, the stock was down 11.88%, though the shares are still up more than 38% since January. 

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