Tesla and CEO Elon Musk took to social media to decry the Republicans' latest bill, which rolls back previously established tax credits for clean energy production.
Last week, the House narrowly passed President Donald Trump's "big, beautiful bill," and proposed terminating most of former President Joe Biden's Inflation Reduction Act of 2022, which had tax incentives for producers of so called "clean energy" sources such as wind and solar.
The revised GOP bill offers renewed support for mining, drilling., and other traditional energy production including nuclear power.
"Abruptly ending the energy tax credits would threaten America's energy independence and the reliability of our grid - we urge the senate to enact legislation with a sensible wind down of 25D (residential solar systems) and 48e (commercial and utility projects). This will ensure continued speedy deployment of over 60 GW capacity per year to support AI and domestic manufacturing growth," Tesla Energy, the company's solar and battery division, posted on its official X account Wednesday.
Tesla's energy subsidiary has seen quiet but steady growth over the years, becoming more relatively profitable that the more well-known automotive division. In 2024 the company boasted a more than a 50% growth, far outpacing Tesla's other divisions.
Although the bill has yet to pass the Senate, the GOP's disincentivizing of clean energy manufacturing could slice into one of the fastest growing sectors of Musk's empire.
Musk later posted: "There is no change to tax incentives for oil & gas, just EV/solar."
Musk had previously stated that he opposed government subsides of any kind, posting in November just after Trump's election: "In my view, we should end all government subsidies, including those for EVs, oil and gas."
The posts come hours after Musk announced he was leaving his government advisory position as the head the Department of Government Efficiency to return full-time to running his various businesses. Upon leaving, Musk lamented that his work at DOGE didn't result in any meaningful government cutbacks after viewing the GOP's proposed bill.
"I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing," Musk said.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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