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Short seller Jim Chanos labels Tesla CEO Elon Musk ‘subsidy king’ and ‘new legal darling’ over proposed carbon tax – iShares Global Clean Energy ETF (NASDAQ:ICLN)

Tesla CEO Elon MuskThe proposal for a “carbon tax” as a crucial measure against climate change has been criticized by short sellers Jim Chanos Sunday.

Musk, in a post on Twitter (formerly known as X), said that a “carbon tax” is the only action needed to address climate change. This statement came in response to a video clip shared by a Tesla influencer, in which Musk discusses the actions needed to combat the climate crisis and accelerate the transition away from fossil fuels.

The cost to society goes unpaid and the net result is the emission of 35 gigatons of carbon into the atmosphere, the Tesla CEO said. “We need to abandon the untaxed negative externality, which is effectively a carbon subsidy of enormous size: $5.3 trillion, according to the IMF, every year. We need to move away from this and introduce a carbon tax,” he said.

Chanos, known for his short positions on Tesla, commented on Musk’s post. “The Subsidy King (and new darling of the right) is calling for a far-reaching new tax,” he said.

Chanos, known for his large bets against Enron and Tesla, recently closed his hedge fund Chanos & Co., originally founded as Kynikos Associates in 1985.

See also: The best renewable energy stocks

Because matter: Chanos’ reference to Musk as the “new darling of the right” stems from Musk’s criticism of the president Joe Bidenthe policies of, particularly on Twitter, a platform owned by Musk.

Musk has recently been outspoken about illegal immigration, particularly through border crossings.

A carbon tax, defined by the International Monetary Fund, is designed to “discourage the use of fossil fuels and encourage a shift to less polluting fuels, thereby limiting emissions of carbon dioxide (CO2) which are by far the largest greenhouse gas widespread. “

Environmental and economic considerations: While Musk promotes Tesla’s electric vehicles and the company’s energy subsidiary as sustainable energy solutions, research indicates that the production of batteries used in electric vehicles and the electricity used for charging contribute to pollution, somewhat decreasing l attractiveness of the green energy of electric vehicles.

THE iShares Global Clean Energy ETF ICLN ended Friday’s session down 1.89% at $13.98, according to data from Benzinga Pro.

Read next: Elon Musk says it’s ‘crazy’ that Europe subsidizes pollution

Photo courtesy: Thomas Hawk on Flickr

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