Elon Musk, the CEO of Tesla, has openly criticized President Donald Trump’s “One Big Beautiful Bill Act,” contending that its significant spending provisions negate the rigorous cost-cutting initiatives he previously championed within the administration. Speaking to CBS, Musk voiced his frustration over the bill’s projected $2.3 trillion increase to the national deficit, arguing it directly counteracts the work of the “department of government efficiency” (Doge) – a unit he led with the mandate to curb state spending.
Musk’s remarks come at a sensitive time for Tesla, which recently reported a 71% slump in first-quarter profits, falling to $409 million from $1.39 billion in the same period last year. The company’s stock has also taken a hit, losing about a quarter of its market value since Musk assumed a prominent role in the Trump administration at the start of the year. This financial instability adds weight to Musk’s criticism, suggesting a potential linkage between his involvement in the administration and Tesla’s recent struggles.
The new bill’s impact on electric vehicle incentives also directly affects Tesla. It proposes to end the $7,500 tax credit for EVs and impose an annual $250 registration fee on owners.8 While Musk had previously advocated for an end to such incentives, his stance appears to have shifted as Tesla’s earnings began to falter. This public condemnation not only highlights a growing chasm between Musk and Trump but also provides ammunition for Republican dissenters who demand deeper cuts to the national debt.