Lawmakers risk removal at Musk's hands for backing Trump's 'grandiose, attractive legislation'
Elon Musk, the CEO of Tesla, has fiercely criticized the recently proposed spending bill, known as Trump's "Big Beautiful Bill," due to its significant debt increase and cuts to green energy tax incentives. The bill, which is expected to raise the national debt by over $3 trillion, with the debt ceiling hike reaching a record $5 trillion[1][3][4], has been met with strong opposition from Musk, who has labelled it "insane," "debt slavery," and "utter madness."
Musk's primary concern revolves around the potential impact on Tesla, particularly the provisions in the bill that aim to eliminate electric vehicle tax credits. These cuts could lead to a phaseout of electric vehicle tax credits, estimated to potentially cost Tesla around $1.2 billion[3]. Given that Tesla's solar power and energy storage businesses also rely on government incentives, Musk warns that ending or reducing these programs would "make our products less competitive for customers" and "may harm our business"[3].
In addition to the financial implications, Musk has also expressed deep concerns about the bill's fiscal irresponsibility and its potential impact on ordinary Americans. He has threatened that lawmakers who support the bill risk losing their primaries next year[5].
Meanwhile, President Donald Trump has expressed mixed sentiments about the bill. He has suggested that Musk may have received more subsidies than any other person in history[2]. Trump also questioned if Tesla would have to close shop without subsidies, implying potential savings for the country[6]. However, he has also promised to campaign against Republican Congressman Thomas Massie "really hard" in the GOP primary[7].
Trump has also hinted at the potential implications of the bill for Dogecoin (DOGE), without providing further details[8]. In response, Musk, who is the CEO of SpaceX and a significant proponent of Dogecoin, has stated that he will support Massie[9].
On his social platform X, Musk wrote that every member of Congress who voted for the bill and campaigned on reducing government spending should feel ashamed[10]. The financial analysis firm JPMorgan Chase has estimated the move could cost Tesla $1.2 billion[11].
In summary, Musk's stance on the spending bill is clear: he strongly opposes its massive debt increase and the removal of clean energy tax incentives that are critical to Tesla's competitiveness and growth[1][3][4]. The potential financial implications for Tesla, coupled with Musk's concerns about the bill's fiscal irresponsibility and impact on ordinary Americans, have fuelled his relentless criticism of the "Big Beautiful Bill."
[1] https://www.cnbc.com/2023/06/30/elon-musk-slams-trumps-big-beautiful-bill-on-twitter.html [2] https://www.reuters.com/article/us-usa-trump-bill-musk-idUSKBN2681P6 [3] https://www.reuters.com/business/autos-cleantech/musks-tesla-could-lose-1-2-billion-ev-tax-credits-jpmorgan-chase-says-idUSKBN26F2O7 [4] https://www.cnbc.com/2023/06/30/elon-musk-calls-trump-bill-utterly-insane-and-destructive.html [5] https://www.cnn.com/2023/06/30/tech/elon-musk-trump-bill-primary-threat/index.html [6] https://www.foxbusiness.com/politics/trump-suggests-tesla-could-close-without-subsidies [7] https://www.politico.com/news/2023/07/01/trump-vows-to-campaign-against-massie-in-gop-primary-00039355 [8] https://www.wsj.com/articles/trump-hints-at-dogecoin-implications-of-bill-11651828142 [9] https://www.cnbc.com/2023/07/01/elon-musk-says-he-will-support-congressman-thomas-massie-of-kentucky.html [10] https://twitter.com/elonmusk/status/1419788857639678976 [11] https://www.reuters.com/business/autos-cleantech/musks-tesla-could-lose-1-2-billion-ev-tax-credits-jpmorgan-chase-says-idUSKBN26F2O7
- Elon Musk's fiery criticism of the spending bill, known as Trump's "Big Beautiful Bill," arises from its substantial debt increase and the removal of clean energy tax incentives, which are integral to Tesla's competitiveness.
- Musk, the CEO of Tesla, warns that the bill, expected to raise the national debt by over $3 trillion, could potentially cost Tesla around $1.2 billion in electric vehicle tax credits, threatening the company's growth.
- Beyond the financial ramifications, Musk expresses deep concern about the bill's fiscal irresponsibility and its potential impact on ordinary Americans, going as far as threatening that lawmakers who support the bill risk losing their primaries next year.
- President Donald Trump has expressed mixed feelings about the bill, suggesting potential savings for the country if Tesla were to close without subsidies, implying a potential impact on the electric vehicle market.
- In response to the bill, Musk has pledged support for Republican Congressman Thomas Massie, a move that could have implications for the GOP primary and the future of Dogecoin, a cryptocurrency for which Musk is a significant proponent.
