Musk vs. Trump: Tesla CEO Blasts $3.8 Trillion Tax Plan.

Elon Musk Criticizes Trump's "One Big Beautiful Bill Act" Over Economic and Clean Energy Concerns. Elon Musk has issued a scathing critique of former President Donald Trump's newly passed tax and spending legislation, officially titled the "One Big Beautiful Bill Act." Once a prominent supporter of Trump, Musk now warns that the bill could severely damage the U.S. economy and jeopardize the future of clean energy. Fiscal Impact: A $2.4 Trillion Deficit Surge According to the nonpartisan Congressional Budget Office (CBO), the bill is projected to increase the federal deficit by approximately $2.4 trillion over the next decade. This surge results from $3.75 trillion in tax cuts, including extensions of the 2017 tax reductions and new exemptions such as eliminating taxes on tips and overtime pay. While the bill proposes $1.25 trillion in spending cuts, the net effect still significantly expands the national debt. Additionally, the legislation would raise the debt ceiling by $4 trillion, bringing it to a total of $40 trillion(bloomberg.com) Healthcare Consequences: Millions to Lose Coverage The CBO estimates that the bill's provisions would result in 10.9 million more Americans becoming uninsured by 2034. This includes 1.4 million undocumented immigrants who would lose coverage under state-funded programs. The increase is primarily due to the bill's cuts to Medicaid and the introduction of new work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Impact on Tesla and Clean Energy Initiatives Musk's opposition is partly rooted in the bill's detrimental effects on his business ventures. The legislation proposes eliminating the $7,500 federal electric vehicle (EV) tax credit, a move that analysts at JPMorgan estimate could reduce Tesla's earnings before interest and taxes (EBIT) by 19%, equating to a $1.2 billion loss. Furthermore, the bill introduces a $250 annual fee for EV owners and a $100 fee for hybrid vehicle owners. It also seeks to terminate the Investment Tax Credit (ITC) for solar and energy storage systems, which would adversely affect Tesla's Powerwall and Megapack businesses. Musk's Public Denunciation In a series of posts on his social media platform X, Musk labeled the bill a "disgusting abomination" and criticized it for being a "massive, outrageous, pork-filled Congressional spending bill." He warned that the legislation would "massively increase the already gigantic budget deficit" and burden American citizens with "crushingly unsustainable debt." Political Repercussions and Legislative Outlook The bill narrowly passed the House with a 215-214 vote and now faces a contentious battle in the Senate, where Republicans hold a slim majority. Senate Majority Leader John Thune has indicated plans to bring the bill to a vote by July 4. However, internal divisions within the Republican Party, fueled by concerns over the bill's fiscal implications and Musk's high-profile criticism, may pose significant hurdles.