Tesla Chief Executive Elon Musk "can't stand it anymore" when it comes to President Donald Trump's "big, beautiful" tax and spending bill.
Musk took to X on Tuesday to criticize the bill that is currently in the U.S. Senate after the House of Representatives approved it late last week. The legislation is broad in scope and repeals several Biden-era tax credits and policies aimed at supporting EV adoption.
"I'm sorry, but I just can't stand it anymore," Musk wrote on X 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. You know it."
Musk quickly added that the Trump tax bill will "massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America (sic) citizens with crushingly unsustainable debt."
Trump And Elon Musk Split Up
Musk's decision to publicly criticize Trump's massive spending package, which the president has called a "big, beautiful bill," comes just days after the Tesla head on Friday officially departed from his role in the White House, with Trump publicly praising him.
Wedbush Securities analyst Dan Ives wrote that Musk's exit was "music to the ears of Tesla shareholders with a crucial few months ahead."
"While Trump mentioned that Musk will stay on as an advisor, we believe that Musk's days in politics are essentially over after this experiment that clearly morphed into brand damage for Tesla and took on a life of its own," Ives wrote last week.
Since what seemed like a cordial parting of ways, Trump has withdrawn his nomination for Jared Isaacman to run NASA, shortly before the Senate confirmation vote. Isaacman is a Musk associate and the billionaire founder of Shift4.
Meanwhile, the Wall Street Journal published a story late Friday outlining friction between Musk and others in the Trump administration. Trump reportedly has described Musk to aides as "50% genius, 50% boy," according to the WSJ report.
Tesla And The Trump Tax Bill
Trump's House-passed tax bill would hit Tesla in several ways as it does away with major portions of former President Joe Biden's Inflation Reduction Act, known as the IRA. This includes tax credits of up to $7,500 for EV purchases among many other incentives.
While the tax and spending bill would repeal many EV incentives, it also includes a provision for the Federal Highway Administration to impose a $250 annual fee registration for an EV vehicle and a $100 annual fee for hybrid vehicles.
This provision aims to make sure that EV operators pay to maintain U.S. roads in lieu of a gasoline tax. Thirty-seven states already collect annual EV fees ranging from $50 to $250 a year.
The House Republican tax bill also restricts and phases out the IRA's "advanced manufacturing production credit."
This Is What The House-Passed Trump Tax Bill Means For Tesla Stock And EVs
The bill also would strip away IRA clean-energy storage provisions, such as the clean electricity investment credit. Under current law, there is a credit for qualified investment in an electricity facility or energy storage technology.
The House-passed bill would phase out the clean electricity investment credit. In the bill, there is a 20% credit reduction for facilities placed in service in 2029, a 40% reduction for facilities placed in service in 2030, and a 60% reduction in 2031. The tax credit terminates at the end of 2031.
Tesla has taken advantage of these IRA provision for its battery storage business.
Meanwhile, the House bill also eliminates the residential clean energy credit at 2025's end.
"Abruptly ending the energy tax credits would threaten America's energy independence and the reliability of our grid," Tesla on May 28 posted to its official X page.
Tesla Stock Performance
Tesla stock rose about 0.5%, paring earlier gains, to 344.27 in stock market action Tuesday. On Monday, shares fell as low as 333.33 before closing down around 1% to 342.69. On Friday, TSLA shed 3.3% but still posted a 2.1% weekly advance, giving it a 22.8% gain in May.
TSLA shares are slightly below a 354.99 buy point. Tesla is on the IBD Leaderboard stock list.
The stock is still down about 15% this year, despite surging on robotaxi bets following the April 22 Q1 conference call. Tesla stock is around 30% below the 488.54 peak from Dec. 18.
"We've lost some sales perhaps on the left but we've gained them on the right," Musk said in a May 20 interview at Bloomberg's Qatar Economic Forum in Abu Dhabi, referring to consumers on the political right and left.
"The sales numbers at this point are strong, and we see no problem with demand," Musk said, adding that TSLA stock is evidence that Tesla EV sales are doing well.
"Our stock wouldn't be trading near all-time highs if things weren't in good shape; they're fine, don't worry about it," Musk said.
Tesla stock has a 21-day average true range of 4.51%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
The S&P 500 and Nasdaq are now in a power trend. Investors can buy stocks with ATRs of up to 8%, though they should be wary of being too concentrated in high-octane names.
Tesla stock has a 77 Composite Rating out of a best-possible 99. The Cathie Wood-backed stock also has a 94 Relative Strength Rating and a 58 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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