Charles Esther
Elon Musk has strongly condemned President Donald Trump’s “Big Beautiful Bill,” calling it a “disgusting abomination.”
The bill, which proposes sweeping federal spending changes, could affect several of Musk’s companies in both positive and negative ways.
Musk’s Sharp Criticism of the Bill
On Tuesday, Musk expressed his disapproval on X, saying, “I’m sorry, but I just can’t stand it anymore.”
He described the bill as a “massive, outrageous, pork-filled Congressional spending bill” and criticized the Republican politicians who voted for it.
Musk wrote, “Shame on those who voted for it: you know you did wrong.”
His comments came shortly after he stepped down from his informal advisory role at the White House.
Despite their disagreements, both Musk and Trump have indicated that their relationship remains intact.
Potential Negative Impact on Tesla
A significant concern for Musk’s electric vehicle company Tesla is the proposed elimination of federal EV tax credits.
The bill would phase out the clean vehicle credit that allows buyers to claim up to $7,500 for new EVs and $4,000 for used EVs.
If passed, automakers like Tesla that have sold over 200,000 qualifying EVs by 2025 would no longer be eligible for these credits.
Tesla delivered more than 336,000 vehicles in the first quarter of 2025 alone, exceeding this limit.
Analysts warn that this change could seriously affect Tesla’s sales volume and profitability.
JPMorgan analyst Ryan Brinkman noted the bill threatens over half of Tesla’s projected 2025 profits, estimating a $1.2 billion hit from tax credit removal alone.
Furthermore, removing credits tied to California’s zero-emission vehicle program could add another $2 billion headwind.
Mixed Views on the Tax Credit Elimination
While Musk believes removing the credits could ultimately benefit Tesla by reducing competition, some experts disagree.
Seth Goldstein, equity strategist at Morningstar, said this removal could make it harder for Tesla to maintain sales as competitors offer more long-range EVs at similar prices.
He also suggested the change might accelerate Tesla’s transition toward becoming more focused on AI and robotics.
Threats to Tesla’s Energy Business
The bill also proposes ending energy tax credits, which would negatively impact Tesla’s energy division.
Tesla Energy, which includes products like the Megapack and Powerwall, generated $2.73 billion in revenue in the first quarter of 2025, a 67% increase year-over-year.
Musk and Tesla Energy have warned that abruptly ending these credits could harm America’s energy independence and grid reliability.
Fees and Other Changes Affecting EV Drivers
The bill introduces new fees for EV and hybrid drivers: $250 annually for EV owners and $100 for hybrid owners, which could further impact Tesla’s market.
It would also eliminate a loan program Tesla used in 2010 to help fund its early growth.
Potential Benefits for Musk’s AI Company xAI
On the positive side, Trump’s bill includes provisions that could benefit Musk’s AI venture, xAI.
It prevents states and local governments from regulating AI for the next decade, potentially reducing bureaucratic obstacles for xAI’s development.
The bill also allocates funds for modernizing federal IT systems and cybersecurity, creating opportunities for xAI to secure government contracts.
Conclusion
Elon Musk’s response to Trump’s “Big Beautiful Bill” highlights the complex impact such legislation can have on his diverse business portfolio.
While Tesla faces significant challenges, especially related to tax credits and regulatory fees, xAI and SpaceX could benefit from increased federal spending in technology and AI.
Musk’s call for leaders to reconsider the bill reflects concerns shared by many analysts about how federal policy shapes the future of innovation and industry.
