--- title: "Elon Musk Is Realizing He Made a Huge Mistake" description: "Elon Musk finally seems to be realizing that his time in government is causing huge problems for his business interests." date: "2025-06-02" modified: "2025-06-02" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/elon-musk-mistake-tesla-tax-credits" categories: - "Elon Musk" - "Future Society" - "The Industrialists" tags: - "donald trump" - "electric vehicle tax credit" - "elon musk" - "evs" - "tesla" --- # Elon Musk Is Realizing He Made a Huge Mistake ![Elon Musk finally seems to be realizing that his time in government is causing huge problems for his business interests.]() *\Image: ALLISON ROBBERT/AFP via Getty Images\* Tesla has been put through the wringer during CEO Elon Musk's absence. The EV maker saw [earnings plummet]() in the first quarter of this year, with net income cratering an astonishing 71 percent since the same period last year. The root of all the trouble was Musk himself, as he embraced far-right ideologies and took on a position gutting the federal government — hugely unpopular moves with Tesla's left-leaning customer base that spawned an international protest movement against the company and eviscerated sales across key markets. Musk's new buddies in Washington weren't helping his business fundamentals either. The Trump administration is planning to [revoke EV tax credits]() and kill incentives for battery production in the US with its latest budget, not to mention its tariff war that's rattled international markets, [directly undermining]() critical supply lines for Tesla. And as [*Electrek* reports](), Musk finally seems to be realizing that his time in government is causing huge problems for his business interests. Take those energy credits. In a [statement]() posted to Musk's social media platform X-formerly-Twitter last week, Tesla wrote that "abruptly ending the energy tax credits would threaten America’s energy independence and the reliability of our grid." Instead, the carmaker argued for a "sensible wind down" of residential and investment-based clean energy tax credits. In a separate post, Musk [pointed out]() that "there is no change to tax incentives for oil and gas, just EV/solar," underlining the Trump administration's staunch anti-clean energy stance. Musk has also called out the Trump administration's tax and spending bill for increasing the budget deficit, tweeting that it "undermines the work that the DOGE team is doing." It's a surprising moment of clarity for a businessman who willingly threw hundreds of millions of dollars behind Trump. The president has [vowed to "drill, baby, drill]()," called climate change a "hoax," and [shocked even oil and gas CEOs]() with his plans to roll back environmental rules. For a time, Musk seemed to support those anti-environmental initiatives. Late last year, he [publicly called]() on the government to scrap all electric car subsidies. "I think we should get rid of all credits," he said at the time. "Take away the subsidies," he [tweeted]() back in July. "It will only help Tesla." But now that Tesla is facing an existential crisis, Musk is seemingly having second thoughts about Trump and the GOP's aggressive anti-clean energy policies. Could this be the beginning of Musk re-embracing his carmaker's [original-but-since-deleted]() "Secret Master Plan" climate manifesto? Or could all of this be [grandstanding]() to put on the appearance that Musk has finally come to his senses to appease enraged Tesla investors and would-be customers? The damage has certainly been done. Musk's actions have set [Tesla's brand on fire](), making it synonymous with an extreme right-wing worldview and [torching desirability]() for its rapidly aging offerings. Meanwhile, Musk's political allies are taking aim at the future of the EV and clean energy sector, potentially making matters even worse for the embattled carmaker. Tesla's shares rallied last month, indicating widespread enthusiasm for Musk's return. But soon he'll have to show results. **More on Tesla:** *[Elon Musk Reportedly Owes Donald Trump a Colossal Sum of Money]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()