Does the EU need to make nice with Elon Musk?

For the EU · Verdict

In This Article:

Elon Musk, one of the most influential figures of the 21st century, stands at the node of technological innovation, energy transition, and digital transformation.

In particular, his contributions to renewable energy and the electric vehicle revolution align closely with the EU’s climate and industrial priorities, making him an indispensable partner in the race for a greener future.

The EU is on a mission to decarbonise transportation, which accounts for a quarter of its greenhouse emissions. The European Green Deal, launched in 2019, is the centerpiece of this effort, aiming to make Europe the first climate-neutral continent by 2050 and cut greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.

Driving the EV revolution

Transportation accounts for 25% of the EU’s greenhouse gas emissions, making the shift to EVs a cornerstone of its climate strategy. With the proposed Fit for 55 legislation, the EU plans to: ban the sale of petrol and diesel cars by 2035. Expand the public charging network, targeting 1.3 million public chargers by 2025 and 3.5 million by 2030.

Germany is heavily investing in wind and solar power while committing to phasing out coal by 2038. The country also hosts Tesla’s Gigafactory in Brandenburg, solidifying its role as a hub for EV manufacturing. France is focusing on a mix of renewables and nuclear energy, aiming to make 40% of its energy mix renewable by 2030. Tesla’s battery solutions like the Megapack could play a critical role in stabilising the French grid as renewable capacity grows.

Musk’s Global Influence

Elon Musk’s influence extends far beyond Tesla and SpaceX. His companies operate on a global scale, bridging markets and industries in ways that governments cannot ignore. Musk’s strong presence in China through Tesla’s Shanghai Gigafactory provides him with unique insights into the EU’s biggest competitor in EV and renewable energy markets. For the EU, engaging with Musk offers a chance to align with one of the most influential figures in the green transition. His vision, resources, and technology could be instrumental in helping Europe stay ahead in the global race toward sustainability.

A balancing act

While Musk’s contributions are undeniable, his companies have not always meshed perfectly with the EU’s regulatory frameworks such as the EU’s Digital Services Act places strict requirements on platforms like X (formerly known as Twitter) for content moderation.

Elsewhere, Tesla has faced scrutiny over labour practices and environmental standards in Europe, particularly in Germany. But these tensions are manageable. The EU can work with Musk to ensure compliance with its rules while benefiting from his innovations. By fostering collaboration, rather than conflict, the EU can leverage Musk’s expertise to advance its own priorities.