The tax bill that the US government is aiming to enforce soon will slash the electric vehicle credits substantially, which will significantly hit the sales of Tesla electric cars, along with other EVs in the country.
Turning from friends and closest ally to a staunch critic of US President Donald Trump, Tesla CEO Elon Musk has again slammed the US Senate’s latest version of the multi-million dollar tax bill on Saturday. Musk has warned that the cuts to electric vehicle and other clean energy credits would be incredibly destructive to the US.
The Tesla chief has posted on his social media account X about the bill, which the US Senate advanced in a contentious vote late Saturday. This came after Musk recently left Donald Trump’s side after working for several months as the head of the US President’s Department of Government Efficiency (DOGE), which proposed several cost-cutting measures. The Senate tax bill would bring a quicker end to a popular $7,500 consumer tax credit for electric vehicles, claims a report by Bloomberg.
While the earlier proposal would have ended the incentive at the end of this year for most EV sales, the new version terminates the credit after Sept. 30. Tax credits for the purchase of used and commercial electric vehicles would end at the same time.
The tax bill that the US government is aiming to enforce soon will slash the electric vehicle credits substantially, which will significantly hit the sales of Tesla electric cars, along with other EVs in the country. Musk has said in his post that the bill would destroy millions of US jobs and give handouts to industries of the past while severely damaging industries of the future.
Bloomberg has reported that the tech billionaire’s latest criticism of the new tax bill threatens to reawaken his public rift with Donald Trump that started after the world’s richest man left his cost-cutting job in the US administration. In his criticism of the bill, Musk also stated that this move would put the US behind China in the race to spearhead the clean energy transition.
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First Published Date: 30 Jun 2025, 07:38 AM IST
