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Emmanuel Macron made his pitch that France is a leading hub for foreign investments and electric cars directly to Elon Musk, as the president seeks to attract global businesses.
Macron and Musk, the head of electric-car maker Tesla Inc and the world’s second-richest person, discussed prospects for development in the electric vehicle and energy sectors at the presidential palace, the French leader tweeted.
They also discussed Europe and France’s response to US President Joe Biden’s green subsidy plan known as the Inflation Reduction Act, according to a Macron aide who asked not be named in line with policy.
The law, which will offer some $369 billion in handouts and tax credits over the next decade for clean-energy programs in North America, has been a point of contention between the US and the European Union.
Brussels has said that aspects of the bill would unfairly discriminate against European companies and is seeking an exemption for European firms. The EU is still working to figure out to what the extent the legislation will impact the bloc’s economy.
The encounter took place on the sidelines of a gathering of some 200 global business leaders whom Macron invited to Versailles to showcase his ability to lure foreign investment. Macron, who is still grappling with deep-rooted opposition to his pension reform, said that his guests pledged some $14.1 billion of new investments.
Macron has been trying to reboot his second term in office after a damaging battle over raising the retirement age that dented his popularity. To do so, he’s announced measures to reverse France’s industrial decline.
Macron said he’d scrap state bonuses meant to encourage the purchase of EVs when models have a dirty carbon footprint — potentially targeting China-made cars. The government will introduce a law proposal it describes as a way to make the industry greener, which will include details on a bonus that Macron has said should benefit European producers.
Macron’s warmth towards Musk surprised some in the French car industry, which is vying with Tesla since the Texas-based automaker lowered the price of its Model 3 and Model Y models. Shares of Renault SA and Peugeot-maker Stellantis NV have been suffering as investors have worried about the price cuts.