Billionaire investor Chamath Palihapitiya has come to the defense of President Donald Trump’s approach to the solar industry, stating that it has actually allowed top solar businesses to flourish.
Trump’s Impact on the Solar Industry
According to Palihapitiya, Trump’s actions did not harm the solar industry, but rather removed subsidies that were distorting market dynamics. He believes that the withdrawal of these subsidies has led to a cleansing effect within the industry, with poorly run companies going out of business and well-run companies thriving.
Key Points
- The removal of subsidies has allowed for a more level playing field, where different energy sources can be compared on a like-for-like basis.
- This has led to more investment in the sector, with some companies driving compelling value despite the loss of subsidies.
- Companies like Tesla and Palmetto are thriving and experiencing explosive growth, despite the challenges posed by the withdrawal of subsidies.
The Free Market at Work
Palihapitiya believes that Trump’s hands-off approach has allowed the free market to dictate the success of solar companies, rather than relying on government subsidies. He argues that this has led to a more efficient and effective industry, with the best-run companies rising to the top.
Quotes
“To be very clear, Trump did not kill solar. In fact, the best-run solar businesses are thriving.”
“What Trump did, precisely, is kill a bunch of Biden-era subsidies that were being taken advantage of by many companies to pervert a free market from well functioning to dysfunctional.”
The Future of the Solar Industry
Despite the challenges posed by the withdrawal of subsidies, Palihapitiya is optimistic about the future of the solar industry. He believes that the sector will continue to grow and thrive, with well-run companies driving innovation and investment.
Companies to Watch
- Tesla
- Palmetto
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