Elon Musk Critiques Trump’s ‘Big Beautiful Bill’: What It Means for Tesla’s Future

Tesla faces challenges with President Trump’s proposed “Big Beautiful Bill.” While the bill aims to support certain industries, it might negatively impact Tesla’s business, especially in electric vehicle (EV) sales.

Musk has been vocal against the bill, calling it “outrageous” and criticizing Republican lawmakers who support it. He argues that it threatens not only Tesla but also the electric vehicle market at large. Just recently, he resigned from his role as the head of the DOGE office, signaling a shift in his focus.

The bill proposes significant changes to the EV tax credits that have been a boon for Tesla and other electric vehicle manufacturers. Currently, buyers of new EVs can get up to $7,500 in tax credits, which Tesla benefits from directly. However, the proposed bill phases out these credits, creating uncertainties about future sales.

Analysts warn that removing the tax credit could hurt Tesla. Seth Goldstein from Morningstar pointed out that Tesla now has many competitors offering EVs at attractive prices. The absence of tax incentives might make it tougher for Tesla to convince consumers to choose its cars over others.

Furthermore, JPMorgan’s Ryan Brinkman noted that this change could threaten over half of Tesla’s profits by 2025, estimating a potential loss starkly tied to the EV tax credits.

On the flip side, Musk’s AI company, xAI, might actually gain from the bill. It includes plans to limit regulations on AI for the next decade, allowing xAI to innovate more freely. There’s also funding aimed at modernizing government IT systems, which could open doors for partnerships with xAI.

All of this leads to a varied outlook for Musk’s companies. Tesla could be facing headwinds in EV sales, while xAI might thrive in an environment with fewer restrictions. As these developments unfold, they offer a glimpse into the intricate links between politics and technology, and how they shape the future of industries.

In summary, while Trump’s spending bill aims to meet certain policy goals, its impact on electric vehicles and AI represents a delicate balancing act for Musk and his businesses. The future remains uncertain, but the interplay of regulatory changes and evolving consumer preferences will be crucial as we move forward.



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