Elon Musk has publicly denounced President Donald Trump’s “Big Beautiful Bill,” urging lawmakers to reject the legislation due to its proposed elimination of electric vehicle (EV) tax credits. Musk’s opposition highlights growing tensions between fiscal conservatives and the Trump administration over the bill’s potential economic impact.
The bill, officially titled the One Big Beautiful Bill Act, aims to extend the 2017 Tax Cuts and Jobs Act provisions, implement stricter work requirements for Medicaid and SNAP recipients, and increase defense spending by $150 billion. However, it also proposes significant cuts to clean-energy tax credits, including the $7,500 federal tax credit for new EVs, a $4,000 credit for used EVs, and a $1,000 credit for Level 2 charger installations. Additionally, the bill introduces a $250 annual federal registration fee for EV owners. These measures could adversely affect Tesla’s profitability, which has benefited from such incentives.
Musk’s criticism extends beyond the EV tax credits. He has labeled the bill a “disgusting abomination” and expressed concerns that it undermines efforts to streamline government spending. Musk previously led the Department of Government Efficiency (DOGE), which aimed to reduce federal expenditures. He announced his departure from the role on May 28, citing frustrations with the bill’s direction.
The Congressional Budget Office estimates that the bill could add $2.4 trillion to the federal deficit over the next decade and result in 10.9 million more uninsured Americans. While Republican leaders defend the bill as necessary for economic growth and fiscal responsibility, critics argue that it disproportionately benefits wealthier households and undermines social safety nets.
Despite Musk’s objections, the Trump administration remains committed to the bill. White House Press Secretary Karoline Leavitt stated, “It doesn’t change the president’s opinion. This is one big beautiful bill and he’s sticking to it.” House Speaker Mike Johnson echoed this sentiment, asserting that Musk is “terribly wrong” about the legislation.
The bill passed the House of Representatives on May 22 by a narrow margin and is now under consideration in the Senate. Fiscal conservative Republicans, including Senators Ron Johnson and Mike Lee, have expressed concerns over the bill’s spending levels and are advocating for amendments. The Senate’s decision will be pivotal in determining the bill’s final form and its implications for the nation’s fiscal policy.
