Elon Musk has acknowledged that the Republican-controlled Congress’ latest budget plan would significantly harm Tesla, citing the removal of incentives for electric vehicles and clean energy. The $7,500 tax credit for electric vehicles, which has been a key factor in Tesla’s success in the US, is expected to be eliminated. Additionally, the 30% tax credit on battery storage and solar will also be repealed.
In a statement released by Tesla, Musk urged the Senate to enact legislation allowing for a gradual phase-out of these incentives rather than removing them altogether. He emphasized that abruptly ending these credits would threaten America’s energy independence and grid reliability. Musk pointed out that while electric vehicles are incentivized at a lower rate compared to fossil fuels.
This move marks a shift in Musk’s stance, as he had previously stated his willingness to remove EV incentives if fossil fuel incentives were also removed. However, with Tesla facing intense competition from Chinese manufacturers, Musk’s comments appear to be an attempt to distance himself from the Trump administration and reposition Tesla for better success.
Many experts believe that Musk’s backing of Trump has failed to achieve meaningful change, particularly on issues related to climate change and clean energy. The move is seen as a strategic maneuver by Musk, aimed at improving Tesla’s public image before the upcoming annual general meeting. However, critics argue that Musk’s incompetence and mismanagement have been major contributors to Tesla’s struggles.
As the US continues to grapple with an increasingly divided landscape, the implications of this budget plan for Tesla and the broader clean energy sector remain uncertain.
Source: https://electrek.co/2025/05/30/elon-musk-starting-realize-trump-gop-killing-tesla