Pete Buttigieg says administration is working to remove China’s ‘edge’ on EVs

Transportation Secretary Pete Buttigieg revealed President Joe Biden’s goal to “take the lead” in electric vehicles.

Buttigieg appeared on Squawk Box Friday to combat presidential hopeful Nikki Haley’s comments on the auto industry churning out EVs too fast. The secretary said that her comments were equivalent to “putting your head in the sand.”

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“The Trump administration allowed China to take the lead in EVs,” Buttigieg said. “And just putting your head in the sand and saying: ‘Well, maybe EVs won’t be a thing,’ is not an answer. That is how you get another generation of rusted-out factories and dead companies because—”

Just then, Buttigieg was interrupted by host Ross Sorkin, who suggested Tesla was doing “pretty well.”

“Tesla did phenomenally well,” Buttigieg agreed. “But at the end of the day, the policies of the last administration allowed China to get an edge that we are now racing to overtake, and I believe we will because we have these policies that not only incentivize demand but really try to make sure that we’re supporting the development of the right kind of market.”

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CEO Elon Musk also did his part to offer an incentive to buy a Tesla by lowering the Model X SUV’s price tag to $79,990 when it was previously $120,990. As a result, the Inflation Reduction Act’s federal tax credit for electric SUVs is applicable to the Model X now that its price is under $80,000.

Meanwhile, Musk also has a modest number of its vehicles assembled in China. According to the China Passenger Car Association, there were some 72,115 China-made Teslas delivered to the United States in October, which is 2.6% less than the month before.