Tesla (TSLA) is badly affected by Trump's 'Big Beautiful Bill' the GOP just passed 😿
(In the house)
https://electrek.co/2025/05/22/tesla-tsla-badly-affected-trumps-big-beautiful-bill-gop-passed/
1. $7,500 EV Tax Credit is going away (for cars over 200,000 sold) ✅
2. On top of removing the tax credit, the bill introduces a $250 annual fee for electric vehicles and a $100 fee for hybrids. ✅
3. Elimination of Clean Energy Credits
The sale of regulatory credits is a significant part of Tesla’s profits. In fact, Tesla’s sales of regulatory credits were higher than its net income in the first quarter of 2025. It means that Tesla would have lost money without regulatory credit. ✅
4. Elimination of Solar and Energy Storage Incentives
The bill kills the Investment Tax Credit (ITC) for solar and energy storage systems, effective January 1, 2026. The ITC previously provided a 30% credit for qualifying solar and battery storage installations. Tesla deploys both solar and energy storage in the US and therefore it will be negatively affected as demand is expected to drop significantly in 2026 without the tax credit. Solar is not a significant business for Tesla anymore, but energy storage deployment is currently Tesla’s only growing business since EV deliveries are down. As a leader in energy storage in the US, Tesla is likely going to feel the impact of the end of ITC more than anyone.✅
Short term boost to beat the Spanish Inquisition, but after about a year, 👎