Elon Musk wears many hats. He is the CEO of America’s leading electric vehicle maker and an influential adviser to Donald Trump, a president-elect who could end federal support for electric vehicles.

Trump’s transition team is reportedly preparing plans to eliminate the $7,500 tax credit for electric vehiclesa key part of President Biden’s efforts to accelerate the adoption of electric vehicles in the United States and a major tailwind for Tesla (TSLA). Musk reportedly told Trump he supported these plans.

Trump’s plans for electric vehicles and related tax credits have not yet been made public. Still, Musk’s support for Trump’s EV plans has raised questions about why he would endorse apparent headwinds for his own company. Here are some possible explanations.

Tesla’s scale is an advantage over competitors

Trump’s second term is we expect it to be difficult for the entire electric vehicle industry. In addition to eliminating tax credits for electric vehicles, Trump has pledged to repeal vehicle emissions standards that would require automakers to make electric vehicles a larger share of their total sales over the next decade.

Still, some see Tesla could benefit from Trump’s anti-EV policies. Musk himself said on a call with investors in July that eliminating federal tax credits could benefit Tesla in the long run, in part because “it would be devastating to our competitors.”

Tesla is one of the only U.S. automakers with profitable electric vehicles, giving it protection against industry-wide headwinds. The company can build electric cars at a lower cost than its domestic competitors, allowing it to offer lower prices than its competitors in a market without subsidies.

However, Tesla sales may be affected by the elimination of the electric vehicle tax credit. Gene Munster, co-founder of Deepwater Asset Management, compared the end of the electric vehicle tax credit to a 15% price hike on Tesla cars that would reduce sales.

Ending the tax credit could also discourage competitors like General Motors (General manager) and Ford (F) to continue to invest heavily in electric vehicles, leaving the door open for Tesla to increase its already significant market share.

Musk All-In on Self-Driving Cars

Musk’s support for ending electric vehicle subsidies could also come from his big bet on autonomous driving and robo-taxis. “Tesla’s value is essentially in its range,” he said in July regarding questions about electric vehicle tax credits. “These other things are a hindrance to autonomy,”

The Trump team plans to make a federal framework for autonomous vehicles a priority of the new Department of Transportation, Bloomberg reported Monday. A framework that accelerates the adoption of self-driving cars would benefit Tesla, which prototypes revealed of two new autonomous vehicles last month.

Musk expects Tesla’s Cybercab and Robovan, neither of which has pedals or a steering wheel, to eventually form a fleet of robotaxis that would compete directly with ride-sharing services like Uber (UBER) and Lyft (LYFT).

Since that vision was articulated, Tesla shares have soared as some investors have reframed Tesla as an autonomous vehicle and AI company rather than a conventional automaker. Before Trump’s re-election, the path to realizing Musk’s robo-taxi dream was seen as facing more regulatory hurdles; Companies like Alphabet’s (GOOG; GOOGLE) Waymo and GM’s Cruise have faced increased scrutiny from security officials.

Musk’s influence with Trump, however, could help pave the way for Tesla. “The golden path for Tesla around Cybercabs and autonomous vehicles is now within reach thanks to a bold strategic alliance between Trump and Musk that is unfolding in real time,” Wedbush analysts wrote.