Trump, Musk Feud Over‌ Electric Vehicle, Solar Incentives

‍ ​ ⁢ Updated june ⁤7,⁤ 2025
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A‍ clash has emerged between Elon Musk and former President Donald Trump regarding​ a Republican bill that proposes to slash incentives for ‌electric vehicles and solar energy, a move⁢ that directly​ affects musk’s company, tesla. Trump argues that Musk’s opposition stems⁤ from the ⁤bill’s elimination of⁢ these electric ‌vehicle (EV) incentives.

Trump told reporters ‌that Musk was ⁤initially well-informed about the bill but changed his stance upon learning about the planned⁢ cuts​ to the EV mandate, which he described ‌as amounting to “billions and billions of dollars.”

While the bill preserves the 2017 income tax cuts,‌ it also includes provisions that ⁢could significantly impact Tesla by‌ rolling ‌back green-tax incentives. Musk ​has criticized‍ the legislation, pointing out the lack of changes to tax incentives for ​oil and gas while EV and solar incentives are targeted.

The House has passed ⁤its version​ of ⁣the bill, but it faces challenges in the‍ Senate.

Impact on Tesla

The “big, lovely​ bill” ⁣could make Tesla cars more expensive by eliminating EV tax credits. The 2022 Inflation Reduction ⁤Act had⁢ previously lifted ‌a cap,allowing manufacturers like Tesla to once again be eligible for a $7,500 consumer tax credit,effectively reducing car prices. The GOP bill’s removal of these credits could lead to decreased ⁢sales, as the higher cost⁢ of EVs compared⁢ to ‍gas-powered cars remains a barrier to ​adoption. However, Musk has previously stated that Tesla does not require the tax credit.

Moreover, the legislation cuts credits for solar energy, impacting Tesla Energy’s rooftop and grid-scale solar power⁣ businesses. Tax credits ⁢for rooftop solar are eliminated after this year, and ⁢grid-scale projects face similar cuts unless construction begins‍ within 60 days ‍of ‌the bill’s enactment and‌ energy production ⁢starts by the end⁢ of 2028. These utility-scale cuts are controversial and may be revised in the Senate.

The bill also seeks to eliminate a Biden-era regulation designed to shift the market toward evs.While Tesla is already ‍all-electric, this change could affect its revenue stream, as conventional automakers may no longer ⁤need to purchase credits⁤ from​ EV ⁣manufacturers ⁣like Tesla to meet the regulations. the Senate parliamentarian must approve this provision before it can be included in the ⁣final version of the bill.

What’s next

The bill’s future hinges ​on its progress in the Senate, where debates and potential‌ revisions ⁤are expected, particularly concerning the‌ solar energy provisions and‌ the EV regulation rollback.