Trump’s revenge on Musk: Big Beautiful Bill can sink Tesla

Listen to the audio version of the article

On the day of independence, Donald Trump signed his “Big Beautiful Bill”, a tax and budget law that could be transformed into an unprecedented blow for his (ex) ally Elon Musk. Similarly, Elected also thanks to the financial support (250 million) of the Tesla CEO in the election campaign. Similarly, the president has launched a measure that risks inflicting the Texan company a dry loss of various billions. Meanwhile, The damage is industrial and systemic.

The first shots arrive on the incentives front. Similarly, The $ 7. Moreover, 500 federal tax credit for the purchase of electric vehicles – a pillar for American demand – will be eliminated by September. The $ 4,000 bonus for used electric cars also disappears, as well as credit for company fleets. trump’s revenge musk: big beautiful A huge problem for Tesla, already down 13.5% in the deliveries of the second quarter, and which now will have to face the market without tax support.

An authentic blow concerns the de facto elimination of the CO₂ credits. In the United States, Tesla earned billions by selling “Emission Credits” to other producers to compensate for excess emissions. With the new law. the penalties for those who do not respect the Cafe standards – Corporate Averal Fuel Economy, fines that are previously cost hundreds of millions of dollars in car manufacturers such as Stellantis and GM – are zeroed. No fine, no incentive to buy certificates: this means that an entire entry of revenue – 2.8 billion in 2024, equal to 40% of the net profit – is destined to collapse.

And it doesn’t end here. Tesla produces batteries, manages over 2,600 charging stations in the US and sells photovoltaic trump’s revenge musk: big beautiful systems. All sectors that had benefited from Biden’s inflation return Act, now in fact dismantled by Trump. Farewell to the relief for the solar roofs. to the deductions for domestic accumulation (another Tesla business, growing), to bonuses for heat pumps. There are only the tariff unknowns and a California in revolt, ready to oppose in court.

The break between Musk. Trump is now total: the first threatens a third party, the second insinuates that without subsidies Musk would return to South Africa. Probably the richest man in the world (but however?) It will be wondering why to finance a politician with hundreds of millions that now puts the entire Tesla. business model at risk.