Elon Musk pukes over pork-filled budget bill with Tesla subsidies on the line
- Reference: 1749147444
- News link: https://www.theregister.co.uk/2025/06/05/trump_musk_face_off_budget_bill/
- Source link:
When the president tapped Musk to lead the so-called Department of Government Efficiency through executive order - it was never a true federal agency, as only Congress can create one - the Tesla and SpaceX CEO pledged he and his minions would find more than $2 trillion to cut out of the $8 trillion-ish US annual government budget, a target he later revised to $1 trillion.
So far, [1]DOGE has so far failed to live up to those early claims, with Musk telling the White House in April that his team had only managed to identify around $150 billion in savings. And only a fraction of DOGE's proposed cuts have materialized into action, with the Trump administration [2]asking Congress this week to cancel just $9.4 billion in DOGE-identified spending that had already been allocated to federal agencies.
[3]
Since [4]leaving his temporary role as a special government employee at the end of May, Musk has come out swinging against Trump's budget bill - dubbed the "One Big Beautiful Bill" in typical hyperbolic phrasing - which government analysts say would add around [5]$2.4 trillion to the US deficit. That would completely undermine the spirit and point of DOGE, Musk [6]told CBS in an interview.
[7]
[8]
Musk later called the bill a "massive, outrageous pork-filled … disgusting abomination" in a [9]post on his personal social media platform. "Shame on those who voted for it: you know you did wrong. You know it."
Let's be honest, Elon
Trump's budget reconciliation bill is huge - 1,038 pages huge, as passed by the House. With the Senate now considering the bill, it could get even longer depending on what sort of riders are added.
Hidden among all the big-ticket items - like work requirements and cuts to health care and nutrition [10]subsidies - are a number of provisions that could hurt Tesla's bottom line.
Narayan Subramanian, former director for energy transition at the US National Security Council and an advisor to the Biden Department of Energy on clean energy projects and supply chains, wrote a piece in Foreign Policy on Thursday [11]arguing that Trump's budget bill would effectively cede dominance of the entire electric vehicle supply chain and global EV dominance to China.
[12]
Subramanian, alongside Carnegie Endowment for International Peace fellow Milo McBride, noted that two key provisions of Trump's bill would scrap the $7,500 EV tax credit - something Musk has [13]actually once supported, saying it would help Tesla by undermining his competition - and phase out the 45X advanced manufacturing production tax credit that has been a key component of convincing battery manufacturers to build plants in the US.
Those two provisions, Subramanian and McBride said, are tightly intertwined with the Biden-era federal government's broader push to "reorient critical mineral sourcing and processing around U.S. and allied supply chains."
Take out the EV tax credit and US demand for electric vehicles will plummet, the pair argue. Without strong EV demand, US battery manufacturing is unlikely to scale at the pace needed to stay competitive. Dual-use technologies and smaller-device markets simply aren't large enough to carry the weight alone. A knock-on effect from the collapse of that US manufacturing effort would likely put China in pole position to dominate the EV race around the world.
[14]
"Already in 2025, the majority of Chinese EVs are cheaper than their fossil equivalents and are flooding the world with low-cost exports," Subramanian and McBride point out - in other words, Tesla isn't the global market leader it once was, and those incentives are a key part of its continued " [15]success ."
Despite higher EU tariffs on Chinese EVs versus US vehicles, Chinese automaker BYD [16]topped Tesla in pure battery EV sales in Europe in April for the first time ever, in what automotive analysts called a "watershed moment" for the European car market.
"The United States is at a strategic crossroads now on whether it can truly compete in the global vehicle market," Subramanian and McBride wrote.
It's also worth pointing out that the Trump bill includes [17]a rollback of another critical Tesla moneymaker - vehicle emissions standards. Were the big beautiful bill to pass as is, emissions standards for light and medium-duty vehicles (everything aside from tractor-trailers, essentially) would loosen significantly, leaving non-EV automakers with much less reason to invest in automotive regulatory credits - a significant source of revenue for Tesla.
Regulatory credits are made available to EV manufacturers, like Tesla, who produce vehicles that exceed emissions standards. Tesla is able to sell those credits to automakers like Ford, GM, Stellantis, and others who produce vehicles that exceed standards to offset their production.
In 2024, Tesla generated $2.76 billion in revenue from selling these regulatory credits - a 54% increase from the previous year, and a sum equal to 3% of its total revenues, and nearly 40% of its net income. In the [18]first quarter [PDF] of this year, those credit sales hit $595 million - eclipsing the automaker's net income of $409 million for the same period.
Speaking to The Register by phone, Subramanian told us that the impetus for his Foreign Policy piece was a defense of the EV tax credit, which he said he hasn't seen many people arguing in favor of - even Musk.
"If you pull out [EV tax credits] - it's like Jenga," Subramanian said. "The whole house falls."
In other words, Musk has more riding on this bill than on the relatively insignificant DOGE savings being sunk by a growing deficit.
[19]US-funded breakthrough battery tech just simply handed over to China
[20]Trump hits undo on Biden AI safety order, EV mandate, emissions standards, and more
[21]US Department of Energy 'flooring the accelerator' with $2.5bn battery loan on battery plants
[22]White House hopes to power up American battery factories with $3.5B fund
Passage or no, the US EV industry - which includes Tesla - might be cooked
Subramanian told us he doesn't think the Trump budget reconciliation bill is likely to pass in its current form given growing Republican [23]opposition .
"Looking at a number of comments across the spectrum on the Republican side of the Senate … I think it's highly unlikely [the bill will pass as is]," Subramanian told us.
That said, he expects a version may still reach Trump with the EV tax credit repeal intact and some modifications to the advanced manufacturing credit, changes he says won't be enough to avoid serious damage to the American EV industry.
Subramanian declined to speculate on Musk's opposition to the bill, but its potential effects on the EV industry make the matter pretty clear: Sure, supporting it would look bad after all that DOGE business, but this is Musk's government-subsidized EV business we're really talking about.
Speaking of which, we reached out to the man himself, but didn't hear back.
Meanwhile, investors seem to agree that the Trump-Musk feud bodes ill for the automaker, sending Tesla shares down more than 14% on Thursday - that's a loss of around $150 billion in market value. ®
Get our [24]Tech Resources
[1] https://www.theregister.com/2025/04/20/musks_doge_promises_fail/
[2] https://www.nbcnews.com/politics/congress/white-house-ask-congress-codify-doge-cuts-usaid-public-broadcasting-rcna210595
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aEITaUfyKu-dPv7f3h77NQAAAks&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2025/05/29/trump_tariffs_trumped/
[5] https://www.cbo.gov/publication/61461
[6] https://www.cbsnews.com/news/elon-musk-disappointed-by-trump-big-beautiful-bill-doge/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aEITaUfyKu-dPv7f3h77NQAAAks&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aEITaUfyKu-dPv7f3h77NQAAAks&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://x.com/elonmusk/status/1929954109689606359
[10] https://news.umich.edu/potential-health-impacts-of-the-big-beautiful-bill/
[11] https://foreignpolicy.com/2025/06/05/electric-vehicles-house-bill-senate-china/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aEITaUfyKu-dPv7f3h77NQAAAks&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.forbes.com/sites/saradorn/2024/12/05/musk-calls-for-ending-electric-vehicle-tax-credit-which-could-help-tesla/
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aEITaUfyKu-dPv7f3h77NQAAAks&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2025/02/06/europe_uk_tesla_sales/
[16] https://www.cnbc.com/2025/05/23/byd-beats-tesla-in-european-ev-sales-despite-higher-tariffs-report.html
[17] https://www.evergreenaction.com/blog/senate-gops-clean-energy-repeal-and-what-it-means-for-bill-costs-jobs-and-our-planet
[18] https://www.sec.gov/Archives/edgar/data/1318605/000162828025018911/tsla-20250331.htm
[19] https://www.theregister.com/2022/08/04/doe_battery_tech_china/
[20] https://www.theregister.com/2025/01/21/trump_eliminates_biden_ai_order/
[21] https://www.theregister.com/2022/12/13/doe_car_battery/
[22] https://www.theregister.com/2023/11/16/doe_battery_technology/
[23] https://abcnews.go.com/Politics/trumps-big-beautiful-bill-survive-senate/story?id=122313558
[24] https://whitepapers.theregister.com/
Musk thinks the bill isn't cruel enough
He wants deeper cuts to medicaid and elsewhere. Funny how I haven't heard him calling for going back to pre-Trump tax rates for millionaires and billionaires. Those rates worked fine from the early 90s to late 10s.
These idiots aren't going to learn how the economy really works until their stupidity causes it to stop working. They'll see what happens when they keep lumping bigger bills on consumers in the form of higher cost for healthcare (or taking away their coverage and leaving the hospitals to cover it when they can't pay) higher prices all around thanks to Trump's idiotic tariff war, and even garnishing of social security checks to pay delinquent student loans (I think that was removed before the house passed their version of the big bill but that doesn't mean it won't come back)
Re: Musk thinks the bill isn't cruel enough
"and even garnishing of social security checks to pay delinquent student loans "
This sounds like a more systemic issue with the loan programs. How does one carry student loan debt into retirement at this point? Are the loan issuers giving piles of money to 50-somethings to go back for a graduate degree? Since student loans aren't dischargable in bankruptcy and come with a menu of fines and fees, it's made entities giving them out be less than diligent. Fill out the forms correctly and you can get a doctorate in Art History with almost zero prospect of gainful employment. It being something that has been the path by third and fourth children of wealthy parents to keep them out of trouble and doing something respectable if not entirely useful. (sorry, I do believe that some people do those sorts of endeavors and add to humankind's understanding). Certainly not with a salary that can be considered a "living wage" even without a massive amount of student loans to pay back. If the loan companies might have to eat some of their poor decisions, they might take a closer look at the degree track and what sorts of salaries those might bring in. It would be a no-brainer to loan somebody money to go to a trade school to learn how to install ,maintain and repair EV charging systems. Plumbers make good money and if they will work nights, doubly so.
> Now he is looking for sympathy! Empathy works both ways mate - but then he wouldnt know about that.
Elon would be really insulted if anyone tried to say he had empathy for anyone/anything: [1]“The fundamental weakness of Western civilization is empathy"
[1] https://edition.cnn.com/2025/03/05/politics/elon-musk-rogan-interview-empathy-doge
Looks like the feud has, at least temporarily, cost Musk about $200 billion in market cap. Could have used some of that to offset Trump's rich guy tax break.
"So far, DOGE has so far failed to live up to those early claims, with Musk telling the White House in April that his team had only managed to identify around $150 billion in savings"
'Savings' such as closing down entire organisations such as USAID which had been created by congress and can only be disbanded by congress.
Firing government employees who didn't reply to a email in a timely fashion and then having to rehire people afterwards.
Claiming that there were people on benefits who were 140 years old, when it just turned out to be the ancient COBOL database defaulting to use 1880 as the year if one hadn't been entered correctly.
And just generally cancelling contracts of anything they deemed 'woke'. Are just some of the highlights of what Musk was up to yet also wasn't because although he was bragging on Twitter than he was doing all of this, the official statement from the White house was that he was just an adviser and not actually the one in charge of DOGE, honestly we pinky swear he isn't.
You forgot ...
... "cancelling" contracts that had already been paid off ... some as many as two decades ago ... and adding their entire amount to his list of money saved.
Re: You forgot ...
"... "cancelling" contracts that had already been paid off ... some as many as two decades ago"
Not just that, but contracts that were due to expire in a short period of time. With the cancellation comes loads of legal wrangling, cancellation clauses, etc to the point where it was less costly to just let those expire naturally.
Oh so what, surely you aren't saying that Elon didn't actually know what he was doing, made stuff up, promised things that he could never possibly achieve, just to ingratiate himself with the new administration; short term anyway, (and get money from it)? No that can't be right surely?
Now let's be fair, yes, there probably are saving that could be made, money maybe, well almost certainly is being wasted. But the way to deal with this is carefully, you use the scalpel not the chainsaw.
"Claiming that there were people on benefits who were 140 years old, when it just turned out to be the ancient COBOL database defaulting to use 1880 as the year if one hadn't been entered correctly." Yes fine, but how can you possibly expect 'BigBalls' et al to understand this? From their perspective nothing before 2010 exists, if it not an app then what?
Now if I were to offer myself up as a government adviser, advising as to how to cut costs, the very, very first thing I would do is to assume that I know nothing about government expenditure, why it is what it is, why is $xyz being spent on this, what would happen if it stopped? And then armed with all that background knowledge, I'd start seeing what could be cut. But that's not what happened is it?
I wonder if future Historians will record Musk's efforts as ultimately costing the average US taxpayer more?
Elon Musk is incompetent. And I use that term in it's literal meaning, 'not understanding', I am an incompetent brain surgeon, I'm an incompetent bus driver etc.I don't have those skills, I don't understand what is needed to do that job; fine, I'm not claiming anything else.
But Elon does.
"'Savings' such as closing down entire organisations such as USAID which had been created by congress and can only be disbanded by congress."
Legally, they could be far outside their mandate, but if they do enough damage quickly enough, it can shatter an organization badly enough to take ages to put it back together. I get the feeling that much of what Donnie has been doing has the same sort of tactic. Issue an Executive Order and by the time a court has waggled their finger at him and said "naughty, naughty", the people have left for other jobs and the systems it had are chopped up and have been sold for scrap.
Narcissistic asshole
....fucked by Narcissistic Prick.
While the Dems are just pussys.
I really must watch Team America again.
Re: Narcissistic asshole
Fuck yeah?
Popcorn time
The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”
Even a broken clock is right twice a day
"at least one expert thinks it spells terrible news for the US electric vehicle industry" - Oh yeah, the guy from BYD, I guess you could call him an "expert".
It's hilarious....
....Tesla stock crashing even more, TACO taking his ball back and throwing a hissy fit. Brat boy pretending he's standing up for the middle classes.
I'm going to need a wheelie bin sized bucket of popcorn.
Re: It's hilarious....
TACO, TACO, "Trump Always Chickens Out." has that become a meme now?
To be fair I did have to look it up, not yet have reached mainstream understanding like LoL etc. Give it time thought!
not even a poop emojie? Oh how the mighty have fallen
Two raging narcissists walk into a bar
They start a fight and burn it to the ground with all the punters inside. They walk away, blaming each other loudly. They look for another pub.
Not unexpected
I knew that putting two egos of this size in one room and adding in a dash of drugs as an emulsifier was going to lead to a bad reaction. Elon has no diplomatic skills and has been allowed to get away with all sorts of transgressions for ages now. The last time he was properly slapped down is when Peter Theil and the board of Confinity sacked him while he was on his way Down Under for a honeymoon with his first relationship victim. Perhaps losing Tesla and SpaceX will be the next two.
Re: Not unexpected
I [1]called it back in January. The big question now is, is Musk prepared to actively sponsor Trump's opponents? And how many of them are shameless enough to take his money?
[1] https://forums.theregister.com/forum/all/2025/01/09/musk_appeal_tesla_pay/#c_4993356
Why do I hear Cyndi Lauper in the background?
"I see your true colors shining through...."
These two deserve each other. Problem is, we don't deserve either of them.
So, Num-nuts Musk has been kicked in the goolies by his mate Donnie after doing a bit of drive by bullying of poor people on his own account. Now he is looking for sympathy!
Empathy works both ways mate - but then he wouldnt know about that.