Elon Musk, CEO of Tesla and SpaceX, has expressed concerns over the US Senate’s revised tax bill proposed by President Donald Trump.

The bill suggests substantial cuts to EV and clean energy credits.

It accelerates the termination of the US$7,500 consumer tax credit for EVs to September 30, instead of the end of the year.

Tax credits for used and commercial EVs would also end on that same date.

Musk warned the bill could hurt industries focused on the future and impact employment in the United States.

He also mentioned the proposed changes might have political consequences for the Republican Party, citing polls that show low public support for the cuts.

This reflects Musk’s continued engagement with government policy, especially in the EV sector.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ EV tax credits have a bipartisan history of supporting American energy independence

The $7,500 electric vehicle tax credit Trump’s bill seeks to eliminate early wasn’t a Democratic invention, but emerged from a bipartisan energy security push during the Bush administration.

The policy framework began with the Energy Independence and Security Act of 2007, which established the original incentives with Republican support during an era of high oil prices and Middle East instability 1.

These credits were expanded in the 2008 Energy Improvement and Extension Act and further refined during the 2009 Recovery Act, showing consistent cross-party recognition of their value for reducing foreign oil dependence 1.

The incentives were designed with built-in phase-out mechanisms (originally after 200,000 vehicles per manufacturer), balancing temporary government support with market-driven adoption—a structure maintained across administrations until now 1.

Historically, these credits have functioned as industrial policy aimed at building domestic EV manufacturing capacity and reducing reliance on imported oil, not merely as consumer subsidies.

2️⃣ Global competition for EV manufacturing intensifies as US pulls back