How much can Tesla lose because of the law that made Elon Musk to give the attack on Trump administration

Elon Musk launched a harsh attack on the Trump administration from which he was a part until last week, accusing that the “great and beautiful law” proposed by the US president will increase the US deficit. But on the discount side of the expenses, the Tesla car company led by the billionaire would be directly affected, Business Insider shows.

In the current form, the draft law targeting the US budget brings major changes to tax credits for electric vehicles introduced by the Biden Biden Administration, which aim to encourage more Americans to buy electric vehicles.

For the most part, the budget law is now in the Congress debate would gradually eliminate the credit for green vehicles, which allows those buying a new electric vehicle to request up to $ 7,500, respectively up to $ 4,000 for used electric vehicles.

Electric vehicles would no longer be eligible for tax credit if the car manufacturer has sold more than 200,000 eligible electric vehicles between December 31, 2009 and December 31, 2025, if the project becomes law. Tesla delivered over 336,000 vehicles only in the first quarter of 2025.

Elon Musk said that the elimination of tax credit for electric vehicles would seriously affect Tesla competitors and have an impact on his company.

Analysts say Tesla might lose half of his profit because of the law

However, Musk said this measure could help Tesla in the long run. But others do not seem convinced of Musk's logic.

Seth Goldstein, a strateg in the field of investment at the Morningstar consulting company, told Business Insider that the accelerated elimination of fiscal credit for electric vehicles will be “the largest area that could affect Tesla”.

“Consumers have several options of high autonomy vehicles, at prices similar to those of Tesla,” says Goldstein. “It is the responsibility of Tesla to show consumers why they would deserve to pay even a little more for a tesla instead of other electric vehicles,” he points out.

Goldstein said that the elimination of tax credit could lead to a decrease in sales volume, a problem that the car manufacturer is already facing, especially in Europe, but also on other major markets.

Analyst Ryan Brinkman from the JPMorgan Chase investment bank wrote in a note for investors that Trump's “Great and Beautiful Law”, along with other legislative proposals, including eliminating the “California Air Resources Board” program, threatens more than half of the Tesla profits estimated for 2025.

Brinkman mentioned that $ 7,500 tax loan for consumers represented 19% of Tesla earnings in 2024 before interest and taxes and could lead to a potential loss of $ 1.2 billion.

He added that Tesla could record an additional $ 2 billion financial blow by eliminating the income obtained from the sale of ZEV certificates (zero -emission vehicles) within the Carb program, which encourages the sale of emissions.

Harsh attack by Elon Musk to the budget law that the Trump administration wants

“I'm sorry, but I simply can not support. This mass of massive, revolting, full of Congress is a disgusting abomination. Shame on those who voted for it: you know you were wrong.” You know this, “Musk wrote in a message distributed on the social network” X “.

“It will increase massively the already gigantic budget deficit to 2.5 trillion (!!!) and will burden American citizens with a crushing debt that cannot be supported,” he wrote in a separate message published immediately afterwards.

In the hours that followed he published or redistributed a wave of messages distributed on this subject, largely supporting messages for his comments from some US legislators or well -known US political commentators. “Congress bankrupts America,” Musk wrote in one of his own messages.

The White House responded by publishing on its website an article about “50 victories in the great and beautiful law”. The article of the White House uses the words with which Donald Trump has repeatedly described this law.

Although written by the Republican legislators in Congress, it was drafted in collaboration with the Trump administration to transpose into the law a large part of the promises made by the Republican leader during last year's election campaign.

The budget law was adopted by the Chamber of Representatives on May 22, at a difference of a single vote, and now needs the approval of the Senate, the upper room of the American Congress.