Republican allies close to the White House are expressing frustration with Elon Musk’s opposition to their legislative priority, claiming the tech billionaire’s stance is driven by his business interests. The criticism comes after Musk spent Tuesday afternoon attacking the spending bill and threatening retaliation against its supporters.
According to Politico, the House-passed megabill, which represents the president’s primary legislative priority in Congress, has exposed ongoing divisions within the coalition that helped Trump secure the White House. The disagreement highlights tensions between the MAGA and Tech Right factions, with some members potentially facing pressure from Musk if they support the bill.
“The West Wing is perplexed, unenthused, and disappointed” with Musk, according to a White House official speaking anonymously about the former special government employee who had invested heavily in their administration. Musk had recently left his White House position to focus on his struggling business empire.
Tesla stands to lose billions in tax credits if the megabill passes
The legislation would eliminate several tax credits that currently benefit Tesla, including a $7,500 federal tax credit for new electric vehicles, a $4,000 credit for used EVs, and a $1,000 credit for Level 2 charger installation. Additionally, the bill would implement a $250 yearly federal registration fee exclusively for EV owners.
Elon Musk is on a fiery collision course with Washington again—this time over a massive spending bill he calls a “disgusting abomination.” It comes days after he attacked the megabill that advances President Donald Trump's legislative agenda.
— The Guardian Nigeria (@GuardianNigeria) June 3, 2025
"I'm sorry, but I just can't stand… pic.twitter.com/5Y6jeyePrg
Tesla’s financial stability could be significantly impacted if the bill passes in its current form. The company’s $11.4 billion in regulatory credits, which contributed to its profitability in the first quarter of this year, would expire at the end of 2025.
White House allies are urging journalists to scrutinize Musk and Tesla’s claims about the megabill more carefully. A Republican close to the White House emphasized that when businessmen criticize legislation, their business interests should be examined rather than taking their statements at face value.
The tension between Musk and the White House was further complicated by his recent unsuccessful attempt to convince Republicans to maintain the electric vehicle tax credit in the megabill. Additionally, the administration had rejected his proposal to integrate his Starlink satellites into the nation’s air traffic control system. The situation was exacerbated by Musk’s reluctance to leave his position as a special government employee despite reaching his 130-day limit, though his eventual departure was viewed by many Trump advisers as inevitable.
