Trump Says Elon Musk Upset With Tax Bill Due To EV Incentives Being Axed: Tesla CEO Says ‘Whatever… Keep The Cuts’

President Donald Trump said on Thursday that Elon Musk is upset with the tax bill because it cuts incentives for electric vehicles and solar energy. The Tesla Inc. (TSLA) CEO shot back instantly, saying that the President can keep the cuts in the bill.

Tesla’s shares tumbled nearly 9% at the time of writing.

In an interview ahead of his meeting with German Chancellor Friedrich Merz, Trump said he’s “very disappointed” with Musk and that he has “done a lot for him,” according to a CNBC report.

The U.S. President called out Musk’s criticism of the tax bill – nicknamed the “Big Beautiful Bill” – and said he’s doing so because the bill takes away incentives for EVs and solar energy.

“You know, I’ve always liked Elon. I’d rather have him criticize me than the bill, because the bill is incredible,” he said.

Trump added that Musk had known from the beginning that the tax bill would cut EV incentives. “They’re having a hard time, the electric vehicles, and they want us to pay billions of dollars in subsidy.”

Trump’s tax bill would cut EV credits worth $7,500 for buyers of some Tesla models and other EVs by the end of 2025, seven years ahead of schedule.

Musk, who has been vocal in his criticism of Trump’s tax bill, dismissed the President’s statements, saying “Whatever” in a post on X.

“Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill,” he said.

Days after leaving the administration, Musk called the Trump tax bill a “disgusting abomination.”

On Wednesday, he followed it up with more criticism, saying that if the deficit spending continues, no money will be left for anything other than interest payments.

JPMorgan On EV Incentive Cuts

Analysts at JPMorgan noted that the EV incentive cuts could cost Tesla up to $1.2 billion in the full year’s net profit, according to a Bloomberg report.

The brokerage added that another Senate legislation that attacks California’s EV incentives could cost Tesla an additional $2 billion.

Together, this would effectively erode more than half of Tesla’s earnings before interest and taxes (EBIT) of $6 billion expected by Wall Street this year, the report added.

TSLA stock is down more than 24% year-to-date, but up over 74% in the past 12 months.

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