Despite hundreds of thousands of dollars spent on lobbying, Elon Musk‘s most famous company has failed to secure the survival of one of the most important pieces of legislation for its industry.
So far in 2025, Tesla has spent $240,000 lobbying Washington in favor of the electric vehicle (EV) tax credit, along with other EV polices, but the policy remains on the chopping block if President Donald Trump‘s “big beautiful bill” passes into law.
Newsweek has contacted Tesla for more information on the issue via email.
The Context
The electric vehicle tax credit was introduced during Joe Biden‘s administration as part of the 2022 Inflation Reduction Act. The credit, which was designed to encourage consumers to buy clean energy vehicles, offers up to $7,500 off electric car purchases, which benefits Tesla as the largest player in the U.S. market.
What To Know
The credit is in jeopardy because part of Trump’s “big beautiful bill” removes the rebate entirely, bringing his tax policy more in line with the administration’s skeptical stance on renewable energies.
According to filings with the House of Representatives’ clerk, Tesla has spent $240,000 on lobbying expenses this year for the credit, along with other industry areas such as “Autonomous Vehicle policies” and “Renewable Fuel Standards.”
Musk has become increasingly critical of the Trump administration’s policies since leaving the White House at the end of May, but even before his departure, he raised concerns that the president was making moves that could impact his companies.
When Trump announced the “Liberation Day” tariffs that upended the global trade status quo, Musk said that the policies were harmful to the complex supply chains that tech companies like Tesla rely on for parts and expertise.
“To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote on social media in response to the policy.
“Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.”
What People Are Saying
A spokesperson for Tesla wrote in a letter to the U.S. Trade Representative: “Even with aggressive localization of its supply chain domestically, certain parts and components are difficult or impossible to source within the United States.”
The company urged the agency to “consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”
What Happens Next
The bill that would remove the credit is currently awaiting approval from the Senate. It has already passed the House of Representatives, and Trump has said that he will sign it into law.
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