Musk leaves out - or maybe he didn't but the reporter did - a couple of things. 1) Most of the subsidy for fossil fuels is actually a subsidy for transportation, which relies mostly on fossil fuels. 2) The production and re-fueling of EVs is primarily a fossil-fuel enabled activity ("EVs just have a longer tailpipe".)

Someone really interested in reducing fossil fuel consumption might want instead to subsidize ways of reducing transportation use.