Tesla(US:TSLA) Benzinga·2025-10-13 08:14Core Viewpoint - Billionaire investor Chamath Palihapitiya defends President Trump's actions regarding solar energy, asserting that the removal of certain subsidies has not harmed the industry but rather allowed for a more competitive market [1][2]. Group 1: Impact of Subsidy Rollbacks - Palihapitiya states that Trump did not kill solar energy, as the best-run solar businesses continue to thrive despite subsidy cuts [2]. - He argues that the removal of Biden-era incentives distorted market dynamics, and Trump's actions have corrected this by eliminating subsidies that led to a dysfunctional market [3]. - The withdrawal of subsidies has resulted in a "cleansing effect" within the solar industry, causing poorly managed companies to go out of business [4]. Group 2: Market Dynamics and Investment - The current market allows for a more direct comparison between coal, oil, natural gas, and solar energy, which is expected to attract more investment in the sector [5]. - While some projects may no longer be viable due to subsidy rollbacks, there are still many thriving solar companies, such as Tesla Inc. and Palmetto, that are experiencing significant growth [5]. - Palihapitiya concludes that the removal of IRA subsidies has enabled the free market to differentiate between successful and unsuccessful companies [6]. Group 3: Regulatory Environment - The Trump administration has halted the approval of new wind and solar projects, emphasizing a shift in policy direction [6]. - Recently, the administration withdrew $679 million in federal funding for twelve infrastructure projects aimed at supporting offshore wind power [6].