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Musk and Trump Escalate Feud Over EV Credits as Senate Debates Tax Bill

Elon Musk is lobbying Senate Republicans to preserve EV and clean energy credits that analysts warn could cost Tesla over $1 billion if eliminated

In an aerial view, electric cars sit parked at a charging station on May 19, 2025 in Corte Madera, California. Republican lawmakers in Washington DC are poised to vote on waivers that allow California to set its own emission standards.
A Cybertruck electric vehicle is viewed inside a Tesla showroom at The Florida Mall on May 13 in Orlando, Fla.
Elon Musk reacts during a press conference with President Donald Trump (not pictured), at the White House in Washington, DC, on May 30.
People participate in a "TeslaTakedown" protest against Elon Musk outside of a Tesla dealership in New York on March 1.

Overview

  • Senators are debating a GOP-led tax bill that would accelerate the phase-out of EV and clean energy tax credits, shaving the incentives seven years earlier than planned.
  • Elon Musk has appealed directly to Republican lawmakers, including House Speaker Mike Johnson, and urged a gradual wind-down of the credits instead of an abrupt cutoff.
  • President Trump threatened to terminate Tesla’s government subsidies and contracts after Musk labeled the legislation a “disgusting abomination.”
  • JPMorgan analysts estimate that stripping EV tax credits could slash Tesla’s full-year profit by about $1.2 billion and compound the automaker’s recent sales downturn.
  • Industry groups warn that scrapping clean energy incentives could shutter hundreds of solar factories, cost over 330,000 jobs and jeopardize U.S. energy independence and grid reliability.