Elon Musk and Tesla have criticized a Republican megabill that aims to end clean energy tax credits, a move that could threaten America’s energy independence and grid reliability. The bill would repeal the Inflation Reduction Act’s residential solar credit at the end of the year and rapidly phase down the clean electricity investment credit for all forms of generation except nuclear.
Tesla Energy, the company’s solar and battery division, warned that ending these credits would lead to faster growth and higher profits in its energy division, which has outperformed its vehicle business in recent years. The company urged the Senate to support a “sensible wind down” of the credits, allowing for continued deployment of over 60 gigawatts of clean energy capacity per year.
Musk recently announced his departure from the Trump administration, citing a need to focus on running Tesla. He has now expressed support for the clean energy tax credits, reversing his previous stance that they should be ended. Musk tweeted that there is no change to tax incentives for oil and gas companies, just electric vehicles and solar energy.
The criticism comes as Tesla faces declining sales and backlash linked to Musk’s actions, including plans to cut federal workers’ pay and benefits. The company’s energy division has seen significant growth in recent years, with profits outpacing its vehicle business.
Source: https://www.politico.com/news/2025/05/29/musk-tesla-blast-gop-end-clean-energy-tax-credits-00374074