United States President Donald Trump criticized Elon Musk, CEO of Tesla and SpaceX, on July 1, 2025.

He alleged that Musk has significantly profited from government subsidies for electric vehicles in a post on Trump’s social media platform, Truth Social.

Trump claimed that Musk may have received more subsidies “than any human being in history.”

He suggested that without this support, Musk’s ventures, including Tesla and SpaceX, might struggle to survive.

Trump also proposed that cutting these subsidies could save the US government substantial funds.

These comments follow Musk’s criticism of proposed cuts to electric vehicle and clean energy tax credits in the US Senate’s revisions to Trump’s tax bill.

Musk described the proposed cuts as potentially harmful to the country’s clean energy progress.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ EV subsidies have a bipartisan history with decades of evolution

Federal support for electric vehicles began long before Tesla’s rise, evolving through multiple administrations of both parties.

The current EV tax credit structure has roots in the 2005 Energy Policy Act signed by President George W. Bush, which initially offered up to $3,400 for hybrid vehicles 1.

These incentives expanded significantly under President Obama’s 2009 Recovery Act, which invested over $2 billion in EV production and infrastructure, including funding for 20,000 charging stations 2.

The historical context demonstrates that today’s EV incentives follow a long American tradition of using tax policy to advance strategic energy priorities, rather than representing a radical departure from past practices.

2️⃣ EV subsidy effectiveness shows mixed results despite significant investment

Recent research reveals that 75% of EV tax credits claimed under the Inflation Reduction Act went to consumers who would have purchased electric vehicles regardless of the incentive 3.