Elon Musk Blasts Trump’s New Tax & Spending Bill

Key Takeaways

• Elon Musk slammed the new Senate draft of Trump’s tax and spending bill, calling it “utterly insane and destructive.”
• The bill eliminates clean energy incentives and introduces new coal industry subsidies.
• Musk warned the legislation could cost millions of jobs and hurt future industries.
• His influence in the GOP has diminished, but some Republicans still back his stance.
• Musk may fund political challengers to GOP members supporting the bill, signaling a new political strategy.

Elon Musk Warns Of Job Losses & Harm To Clean Energy

Taking to X on Saturday, June 28th, Elon Musk labeled the proposed legislation as “utterly insane and destructive,” claiming it could jeopardize millions of American jobs and sabotage the nation’s economic future.

Source: X (@elonmusk)

Musk Slams Outdated Industry Support

In his social media posts, Musk argued that the bill unfairly favors outdated industries like coal while undermining the innovation economy. He specifically cited the removal of clean energy incentives, such as tax credits for electric vehicles, solar power, and wind energy, as a direct attack on future-forward sectors.

This latest critique may further inflame the already strained relationship between Musk and Trump. Once a close ally, Musk has since distanced himself from the former president following his controversial tenure as head of the now-defunct Department of Government Efficiency.

From Political Power Player To Outsider

At the height of his political influence, Musk was a major donor to Trump’s re-election campaign and played a pivotal role in shaping GOP strategies.

However, his fall from grace in conservative circles began after a turbulent stint in Washington, leaving many questioning his current influence within the Republican party.

Key Changes Affecting The Future

Clean Energy Gets Cut, Coal Gets A Boost

The revised tax and spending bill marks a significant policy reversal from earlier proposals. Among the most controversial changes:

• Electric vehicle tax credits now expire September 30, three months earlier than originally planned

• Used and commercial EV incentives will also terminate by the same date

• Financial support for wind and solar energy sees deep cuts

• New incentives for coal production are introduced

Source: X (@JesseJenkins)

Musk argues that these changes will disproportionately affect emerging technologies and green energy companies, threatening U.S. leadership in innovation.

A History Of Opposition

This isn’t the first time Musk has taken on a major government spending package. In December, he publicly opposed an earlier version of the bill, urging lawmakers via social media to abandon support.

The move swayed several GOP senators and nearly led to a government shutdown.

Republican Support Shaky Amid Musk’s Influence

Backlash From Fiscal Conservatives

Musk’s criticism appears to be resonating with some fiscally conservative Republicans in the Senate. Several lawmakers have shared or echoed his concerns on social media, increasing the likelihood of gridlock in the upper chamber.

Despite Musk’s attempts to rally opposition, most congressional Republicans are currently siding with Trump, calculating that loyalty to the former president is a safer political bet, even as divisions within the party become more visible.

Musk Threatens To Back Primary Challengers

In a further escalation, Musk hinted at funding primary challenges against Republicans who vote in favor of the bill. This move signals his intent to influence the GOP from the outside, redirecting his political capital toward reshaping the party’s priorities around innovation and economic modernization.

“This huge, ridiculous spending bill is awful,” Musk wrote, vowing to hold lawmakers accountable.

Trump’s Camp Unfazed As Focus Shifts Elsewhere

While Musk ramps up his political offensive, Trump and his advisors appear unfazed. Sources within the White House claim the president has “moved on to more important matters,” including trade talks with China and monetary policy.

In a Truth Social post following the May jobs report, Trump pivoted attention toward Federal Reserve Chairman Jerome Powell, urging aggressive interest rate cuts.

Meanwhile, Musk reportedly hoped for a direct call with Trump—but aides say no such conversation is scheduled or likely.

FAQ

Why is Elon Musk against Trump’s tax and spending bill?

Musk opposes the bill because it eliminates incentives for clean energy and electric vehicles while offering new benefits to coal producers. He believes this will hurt job creation and innovation.

What clean energy incentives are being removed?

Tax credits for electric vehicles (EVs), solar energy, and wind power are being phased out. EV credits in particular will end by September 30, under the current draft of the bill.

Is Elon Musk still influential in Republican politics?

While Musk was once a key Trump ally and major donor, his influence has waned following his controversial government role. However, his public statements still hold weight among certain fiscal conservatives.

Could Musk really influence the outcome of the bill?

Potentially. His criticism has already caused some GOP senators to waver. His threat to fund primary challenges may further pressure lawmakers to reconsider their stance.