Elon Musk supports the critique of Trump's tax law, expressing his views for the first time since its approval.
In a recent post on social media platform X, Elon Musk, the CEO of Tesla, has expressed his strong opposition to President Trump's tax and spending package, known as the "One Big Beautiful Bill." Musk's criticism primarily revolves around the bill's fiscal implications and its potential negative impact on the renewable energy sector.
Musk views the bill as potentially increasing the national debt significantly, undermining incentives for electric vehicles, which are crucial to Tesla's growth and the broader transition to sustainable energy. He has described the bill as "utterly insane and destructive," arguing it favors traditional fossil fuels over renewable energy and jeopardizes the U.S. clean energy leadership.
The controversy has had tangible financial consequences for Tesla: after Trump's announcement and related remarks, Tesla's stock price dropped sharply, signaling investor unease about the bill's regulatory and economic environment. This market reaction underscores the risk the legislation poses to Tesla's future revenue and valuation.
In contrast, the White House and supporters of the bill emphasize its fiscal benefits, such as making the Trump Tax Cuts permanent, supporting small businesses, and investing in American manufacturing. They argue that these measures will boost the middle and working class without harming Medicaid or increasing taxes on low-income workers.
However, Musk's opposition focuses on the bill's rollback of clean energy subsidies and EV tax credits, which he sees as detrimental to Tesla and the renewable energy sector. He has also expressed concerns about the bill's potential to "explode the deficit in the near term" and "destroy millions of American jobs," as well as inflict significant long-term harm on the country.
The final vote in the House of Representatives saw the bill passing by a margin of 218-214. All Democrats in the House voted against the legislation, along with Republicans Thomas Massie and Brian Fitzpatrick. The Congressional Budget Office report states that the package will raise the deficit by $3.3T over the next 10 years.
Musk's comments on the bill were made on Friday, following his earlier criticism in a post on X last week. His stance reflects his concern about both short-term economic effects and long-term environmental and innovation setbacks.
- Elon Musk, the CEO of Tesla, has expressed his concern about the long-term environmental and innovation setbacks that might result from President Trump's tax and spending package, known as the "One Big Beautiful Bill."
- Musk has criticized the bill for its potential to explode the deficit in the near term and destroy millions of American jobs, in addition to rolling back clean energy subsidies and EV tax credits, which he sees as detrimental to Tesla and the renewable energy sector.
- The controversy over Trump's tax and spending package has had tangible financial consequences for Tesla, as witnessed by its stock price dropping sharply after the president's announcement and related remarks.
- In contrast to Musk's opposition, the White House and supporters of the bill argue that it will boost the middle and working class without harming Medicaid or increasing taxes on low-income workers, and that it will also make Trump's Tax Cuts permanent, support small businesses, and invest in American manufacturing.
- The debate over this bill is not only centered on politics and finance, but also on issues such as entrepreneurship, business, technology, social media, entertainment, policy-and-legislation, and general news.
