From Nasdaq, Inc.:

Elon Musk’s proposal for a carbon tax as a key measure to combat climate change received criticism from prominent short-seller Jim Chanos. Musk asserts that a carbon tax is essential to address climate change, citing a $5.3 trillion carbon subsidy. Chanos, known for his Tesla short positions, referred to Musk as the “Subsidy King” and criticized his call for a broad new tax.

Chanos recently wound down his hedge fund, Chanos & Co., recognizing Musk’s vocal criticisms of President Joe Biden’s policies as the “new darling of the Right.” Musk has been vocal about illegal immigration and posted advocating for a carbon tax, designed to discourage the use of fossil fuels and limit CO2 emissions, to limit greenhouse gas.

Musk’s focus on combating climate change contrasts with research showing that certain aspects of electric vehicle (EV) manufacturing and charging contribute to pollution. The iShares Global Clean Energy ETF trended down 1.89% on Friday, closing at $13.98, indicating a potential impact of this debate on renewable energy stocks in the market.

The discussion reveals a significant debate on climate change and environmental policy. Teslas’ CEO, Musk, has voiced support for a carbon tax, while short-seller Chanos has raised questions about Musk’s motivations and influences. Combined with the market’s reaction, the debate brings attention to both the practical and financial implications of environmental policies.



Read more: Short-Seller Jim Chanos Labels Tesla CEO Elon Musk As ‘Subsidy King’ And ‘New Darling Of Right’ For Carbon Tax Proposal