Facing backlash, a US tax bill may slash EV incentives and green jobs, Elon Musk warns it could cripple clean energy while propping up outdated industries.
Elon Musk has sharply criticised a new United States (US) Senate tax proposal, warning it could lead to massive job losses and set back the country’s progress in electric vehicles (EVs) and clean energy.
At the centre of the controversy is the proposal to accelerate the phase-out of a $7,500 consumer tax credit for EV purchases. While the original plan would have ended the credit at year-end, the revised version would now cut it off on 30 September. Incentives for used and commercial EVs would also be eliminated on the same date.
The Tesla and SpaceX boss said the bill would favour outdated industries through government support, while undermining future-focused sectors. He argued the legislation risks undoing years of work toward sustainability and innovation.
Posting on his social media platform X, Musk described the bill as “destructive, a strategic harm” and accused lawmakers of giving financial advantages to legacy industries. He warned the policy could “destroy millions of American jobs.”
Musk’s remarks follow his recent departure from a role in the Trump administration, where he briefly led an initiative focused on government efficiency. His exit marked a growing distance between the tech billionaire and the President.
Though Musk’s criticism may deepen the divide, Trump responded cautiously in a pre-recorded interview aired Sunday. He praised Musk but suggested the entrepreneur had become upset over the matter.
The Senate bill has sparked fierce debate, with environmental groups and clean energy advocates warning it could hinder the country’s shift toward sustainable technologies.
Business leaders, including Musk, argue that pulling support from emerging sectors at a critical moment could have lasting consequences for both the economy and the environment.
