Republicans pushed back against Elon Musk’s criticism of the Big Beautiful Bill, arguing that his opposition largely stems from the legislation’s removal of green tax credits. Their response came as the billionaire entrepreneur launched a blistering attack on President Donald Trump.
Musk inflamed controversy when he decided to publicly oppose the House-passed One Big Beautiful Bill Act. “I’m sorry, but I just can’t stand it anymore,” Musk wrote in a post on X. “This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.” He added: “Shame on those who voted for it: you know you did wrong. You know it.”
However, Republicans and several media outlets have pointed out that Musk may have a deeper personal stake in opposing the legislation than he publicly acknowledges. The bill eliminates billions of dollars in tax credits that would directly benefit Tesla and other parts of his business empire.
“When businessmen criticize legislation, journalists don’t take them at their word, they look at how the legislation would impact their business interests,” a Republican explained to Politico. “They should be doing that in this case.”
The legislation would eliminate several tax credits that Tesla—one of the nation’s largest electric vehicle manufacturers—currently benefits from. These include the $7,500 federal credit for new EVs, the $4,000 credit for used EVs, and a $1,000 credit for Level 2 home charger installations. Additionally, the bill proposes a new $250 annual federal registration fee specifically for EV owners.
If passed in its current form, the bill would also phase out Tesla’s $11.4 billion in regulatory credits by the end of 2025. According to Politico, those credits played a key role in Tesla’s profitability during the first quarter of this year.
Axios reported that a major turning point in the relationship between Trump and Musk came when the legislation included a provision to eliminate electric vehicle tax credits that benefit automakers like Tesla. The company reportedly spent $240,000 lobbying in support of the credit and related issues.