Last month, when Elon Musk endorsed Donald Trump for president, he threw his support behind a candidate who advocates for increased fossil fuel production, opposes electric vehicle (EV) mandates, and aims to reduce subsidies that have been crucial to Tesla’s dominance in the U.S. EV market. Despite Musk’s growing alignment with Trump and Republican rhetoric in recent years, Tesla continues to lobby for government benefits typically supported by the Democratic Party.

For example, in February, Tesla urged the Biden administration in a filing with the U.S. Environmental Protection Agency (EPA) to allow California to implement stricter vehicle emissions standards than the rest of the country—a position Trump opposes. Previously, Tesla lobbied for regulations that would ban the production of most new gasoline cars by 2035, a policy criticized by Trump and other right-wing figures.

Musk’s mixed signals are not new. Although he increasingly criticizes subsidies, Tesla continues to benefit from them. Mike Murphy, a Republican strategist, remarked, “Elon claims to oppose subsidies while Tesla takes full advantage of them.”

Insiders at Tesla describe Musk’s approach to subsidies as pragmatic: he accepts public money if it’s available. Musk’s willingness to support a political figure who opposes the EV industry suggests that his goals extend beyond Tesla’s immediate interests. As Andrew Ward, a management professor at Lehigh University, noted, Musk may be willing to sacrifice some of Tesla’s short-term interests for his broader ambitions, which include ventures in AI, space exploration, and neuroscience.

Neither Musk, Tesla, Trump, nor the White House responded to requests for comment from Reuters. The growing alliance between Trump and Musk might become more evident when Musk interviews the former president on his social media platform, X.

It’s unclear what Musk hopes to achieve by distancing himself from progressive policies like EV subsidies and identity politics. His endorsement of Trump solidified in July after an assassination attempt against the former president, with Musk committing to fund a political action committee that has spent $21 million supporting Trump and opposing the Democratic ticket.

Tesla has greatly benefited from government support since its inception, largely due to its role in advancing cleaner vehicles. The company’s first major factory in Fremont, California, was developed with a $465 million loan from the U.S. Department of Energy, which was repaid within three years. Since 2018, Tesla has earned nearly $9 billion from selling regulatory credits, which are awarded to manufacturers who exceed emissions standards and can be sold to other automakers that fail to comply.

California Governor Gavin Newsom highlighted the importance of these credits to Tesla’s success, stating in 2022, “There was no Tesla without California’s regulatory bodies.” Tesla’s lobbying efforts continue to shape public policy in favor of such benefits, as shown by its public comments to federal and state regulators.

In a February filing with the U.S. Department of the Treasury, Tesla argued that continued government support would accelerate the transition away from fossil fuels, reducing greenhouse gas emissions and protecting public health. Musk, who once criticized Trump for ignoring climate change, withdrew from White House advisory panels in 2017 when the administration left the Paris Agreement. At the time, Musk said, “Climate change is real,” and called Trump’s decision to leave the agreement harmful to both America and the world.

After Trump’s defeat in 2020, Musk expressed excitement about President Joe Biden’s climate agenda, but his enthusiasm waned when Tesla was excluded from a 2021 White House EV maker summit. By December of that year, Musk had distanced himself from Biden’s initiatives, criticizing the Inflation Reduction Act (IRA), which included subsidies for clean energy. However, after the law passed in 2022, Tesla praised it in formal comments to the Treasury and the Internal Revenue Service, highlighting the potential benefits, including up to $250 million per quarter in tax credits for battery manufacturing.

Despite Musk’s public stance against subsidies, Tesla continues to benefit from government support, with stricter emissions regulations helping it earn billions from the sale of regulatory credits. In a July filing with the EPA, Tesla called for an end to gasoline car production, citing the need to address the “rapidly escalating climate crisis.” Musk, however, has downplayed the near-term risks of climate change while acknowledging long-term concerns.

Musk’s views on other issues have also evolved. In May 2022, Tesla described itself as a leader in creating a diverse and inclusive workplace in a filing with the California Air Resources Board, highlighting its commitment to communities historically marginalized from equal opportunities. Yet, Musk has increasingly rejected identity politics, recently criticizing the Democratic Party as the “party of division & hate.”

Musk’s disdain for Vice President Kamala Harris has also become apparent, with him recently calling her “literally a communist” on social media. Joseph Costello, a Harris campaign spokesperson, responded by accusing Trump of being beholden to “extremist, anti-worker billionaires” and suggested that Musk knows Trump will provide “reckless tax handouts” that benefit the wealthy at the expense of the middle class.