Ev tax credit: The dispute between US President Donald Trump and Tesla CEO Musk is no longer hidden from anyone. Actually, musk electric vehicle is angry with the removal of tax incentives.

Trump and Musk clashed with each other

While Musk says that Trump’s ‘Big Beautiful Bill’ will increase US $ 2.4 trillion in the next ten years. In this bill, by furthering the policy of Trump of 2017, the general public and companies have to provide relief from tax. In this, there is a proposal of remedies for 3.5 percent on sending money abroad, which has given exemption to Americans. Apart from this, it is also proposed to abolish the subsidy on EV. Trump believes that this bill will save $ 1.6 trillion. This will emerge the US economy as stronger.

Trump threatens Musk

Now when Musk is criticizing it, where is Trump going to retreat. He also wrote on Truth Social, “The easiest way to save billions of dollars in our budget is to eliminate Alan’s government subsidy and contracts. I am surprised why Biden did not do this. ”

EV Tax Credit is a tax credit of up to $ 7,500 on the purchase of electric vehicles in the US. That is, while filing tax returns, there will be a discount of $ 7,500 on new vehicles and $ 4,000 on vehicles purchased or after 2010.

How much benefit the musc for government fund?

Two Musk’s companies- Tesla and SpaceX have been benefiting from government subsidies and contras. The government had arranged for EV tax credit to reduce carbon emissions as a part of promoting climate change efforts, which made a lot of profits. According to an analysis of the Washington Post, Musk and his companies have received $ 38 billion in the form of government contracts, loans, subsidies and tax credit in more than two decades.

In the last five years, about two-thirds of funds of Musk companies were allotted to the companies of $ 38 billion, while in 2024, $ 6.3 billion was also received by the government. SpaceX has also received at least 1 billion dollars in the form of government contracts, loans, subsidies and tax credit every year since 2016. The amount ranged between 2021 and 2024 between $ 2 to 4 billion. Whereas Tesla received more than $ 1 billion every year from 2020. Now it is obvious that if there is any cut in any of these, then the musk will suffer heavy losses.

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Trump-musk row: The friendship between Tesla CEO Allen Musk and US President Donald Trump is well known, but now the relationship between the two has been rift. It is being told that the reason for this sourness is a tax policy bill, which has been severely criticized by Musk.

In fact, Musk described the bill related to Trump’s tax and expenditure as a bill for wastage of public money. They even called it shameful. Musk also said that the bill could not be discussed much so it was passed overnight. Now it is obvious that after this comment of Musk, Trump has also become very angry.

Trump threatened Musk

Talking to the media on Thursday night, Trump claimed that Musk had complete information about tax and expenditure bill. After separating from the government, as soon as he came to know about cutting the electric vehicle (EV) mandate, he suddenly had a problem. While Musk says that he did not know anything about it beforehand. Here, during the increasing tension between the two on social media, Trump even threatened Musk to end government subsidy and contracts.

Bad condition of Tesla shares

The effect of this dispute between the two was such that Tesla’s shares declined by 14 percent on Thursday. This caused a loss of $ 152 billion in Tesla’s market cap. The company’s market cap has now come down from $ 1 trillion to $ 916 billion. This is the biggest decline ever in Tesla’s market cap. According to Forbes, after this decline in the shares on Thursday, Musk’s total assets have come down by about $ 27 billion to $ 388 billion.

Why is Musk angry with Trump?

Musk Trump is angry with this budget bill because it proposes to abolish the tax credit of up to $ 7,500 on the purchase of EV. This decision of Trump will have a big impact on companies including Tesla, which depend on this subsidy. According to JP Morgan, Tesla may lose $ 1.2 billion annually due to the government’s new policy on EV tax credit.

The reason for abolishing EV tax credit

The law made during the time of Trump Biden wants to eliminate EV tax credit because he believes that due to this, many companies like Tesla are going to private companies instead of government treasures due to uneven benefits. Trump wants to use it for economic development by eliminating it. Their plan is to promote private investment with this money, which will give more jobs to more people and will strengthen the economy.

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