Elon Musk was never shy of his contempt for the big government. However, many Musk companies flourished thanks to government subsidies, tax credit and federal contracts. The same “bulletins” that you often seek, in many ways, are the lifeblood of his business empire.
The tension reached his head on June 3, when Musk moved to X to Enam, “The Beautiful Big Law”, a proposal aimed at canceling EV tax credits and reducing clean energy financing. He described the legislation as “disgusting abomination.”
I am sorry, but I can’t stand anymore.
This is a draft law of huge Congress, obscene, filled with pork is disgusting abomination.
A shame for those who voted for her: You know that you made a mistake. You know that.
Elon Musk (@elonmusk) June 3, 2025
President Trump, no one let the criticism slide, and responded strongly. In fact, the real social, it is accused Musk from serving the self and depends on “billions and billions of dollars” in federal aid. He even threatened to strip the Tesla (Nasdaq: TSLA) and Spacex of their subsidies and contracts.
Tesla shared by more than 14 % on the market on June 5 after the initiative, as it spent more than $ 150 billion from the maximum market. Investors, who are already increasing due to the slowdown demand for EV and the growing competition, are facing the possibility of Tesla without its government safety network.
Tesla’s increasing dependence on organizational credits
In fact, the dependence of Tesla on organizational credits has increased over the years:
| a period | Organizational credit revenues | Net income (profit) | Credit as a percentage of net income |
| Q1 2025 | 595 million dollars | 409 million dollars | 145 % |
| Q1 2024 | 442 million dollars | $ 1.39 billion | 31.8 % |
| Fiscal year 2024 | $ 2.76 billion | 7.09 billion dollars | 38.9 % |
| Fiscal year 2023 | $ 1.79 billion | 14.99 billion dollars | 11.9 % |
| Fiscal year 2022 | $ 1.78 billion | 12.56 billion dollars | 14.2 % |
Then there is a federal tax credit, which also targets the proposed Trump bill, which can even fly 7500 dollars Outside consumer purchase prices. This credit is a big boost for Tesla sales, especially since its vehicles grow more expensive and reduce it with new competition for the price.
As we see, these credits have become a growing source of profit. The end result in Tesla is not only the design or elegant products design. It is also supported by politics. This makes the company, and hold itself more vulnerable to Washington’s variable winds than it wants to admit.
Distinctive image via Shutterstock.
