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Russian (RU) Ana Altchek,Alice Tecotzky,Kelsey Vlamis
Tue, Jun 3, 2025, 10:17 PM 6 min read
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Elon Musk's companies may be affected both positively and negatively by Trump's "Big Beautiful Bill."
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A JPMorgan analyst wrote in a note that the bill threatens Tesla's profits.
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The bill would increase federal AI spending, which could benefit Musk's AI company, xAI.
Tesla could take a hit if President Donald Trump's "Big Beautiful Bill" becomes law.
Elon Musk's AI company, however, may get a boost.
Many of Musk's companies rely largely on federal regulations, subsidies, or contracts. That means the GOP's federal spending bill, if signed into law, could directly impact his businesses.
While Musk has previously shared his disapproval of the bill, the billionaire ratcheted up his criticism this week.
"I'm sorry, but I just can't stand it anymore," Musk posted on X on Tuesday. "This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination."
"Shame on those who voted for it: you know you did wrong," he said in criticism aimed at the Republican politicians who voted in favor of the bill.
Musk's sharp words for Trump's bill come just days after he officially left his position as the de facto head of the DOGE office, ending his formal work at the White House. In recent weeks, both Trump and Musk have looked to assure the public that their relationship remains intact, even if they disagree on some issues.
White House press secretary Karoline Leavitt said in a briefing on Tuesday that the President already knew where Musk stood on the spending bill and that the Tesla CEO's recent comments criticizing it wouldn't change Trump's stance.
The bill, which champions Trump's agenda, includes cuts to Medicaid and the extension of the tax cuts that the president signed into law during his first term in 2017. It also includes administration priorities, including removing taxes on tips and overtime.
In regard to the companies Musk leads, the bill could have a mixed impact. While Tesla stands to potentially lose, companies like SpaceX and xAI may benefit from the president's massive spending bill.
The bill, as written, makes big changes to the Biden-era EV tax credits, which aim to encourage more Americans to buy electric vehicles. It would largely phase out the clean vehicle credit, which lets people buying a new EV claim up to $7,500, and up to $4,000 for used-EVs.
Electric vehicles would no longer qualify for the tax credit if the automaker sold more than 200,000 previously qualifying EVs between December 31, 2009, and December 31, 2025, if the bill became law. Tesla delivered more than 336,000 vehicles in the first quarter of 2025 alone.
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