Elon Musk’s public criticism of President Donald Trump’s “One Big Beautiful Bill Act” appears to be intertwined with Tesla’s recent financial downturn, with the CEO implying a connection between the bill’s provisions and his company’s performance. Musk told CBS that the “massive spending bill” undermines the “work that the Doge team is doing” – referring to his past efforts to cut government spending – and comes as Tesla reports a drastic 71% drop in first-quarter profits.
Tesla’s profits plummeted to $409 million, a significant decline from $1.39 billion in the same period of the previous year. The company’s stock has also suffered, losing approximately a quarter of its market value since Musk took on an advisory role in the Trump administration at the start of the year. While Musk had previously called for an end to EV incentives, the new bill’s elimination of the $7,500 tax credit for electric vehicles and the imposition of a $250 annual registration fee directly impact Tesla’s sales and profitability, adding a strong business incentive to his critique.
This confluence of Tesla’s financial struggles and the specific economic policies within Trump’s bill suggests a deeper motive behind Musk’s public dissent. His remarks are not merely about fiscal responsibility but also about protecting his company’s interests in a changing regulatory landscape. This alignment of personal business concerns with broader policy critiques is likely to amplify the debate surrounding the bill’s true economic impact.