Elon Musk
How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies
Tesla has a few paths to limit damage from the elimination of tax credits.

The United States House of Representatives passed President Trump’s “Big Beautiful Bill” by a vote of 215 to 214 on Thursday, effectively bringing an end to many EV subsidy programs, like the $7,500 tax credit, by the end of this year.
The bill will not only eliminate the $7,500 credit on new EV purchases, but also the $4,000 credit given on the purchase of used electric vehicles, and a $1,000 credit on the installation of Level 2 chargers. It will also impact solar subsidies that help generate clean energy in a residential setting.
EVs would also be subject to a $250 road use fee.
🚨 The “Big Beautiful Bill” has been passed in the House, meaning:
1) The EV tax credit is in serious jeopardy. It will likely be eliminated for 2026.
2) EVs will likely have a $250 road use fee
3) $1,000 Level 2 charger credit will also be eliminated pic.twitter.com/Aad41say43— TESLARATI (@Teslarati) May 22, 2025
All of these things sound like negatives — truly because they are. Those who are not in a financial position to buy an EV this year, even with the tax credit, might not be able to afford them in the coming years either, unless manufacturers are able to bring pricing to a level that is more accessible to consumers.
In theory, President Trump’s focus on bringing manufacturing back to America would bring prices down, but it won’t happen overnight. Companies will take many years to completely bring manufacturing and part sourcing to the United States.
However, Tesla could feel some positives from this bill, and it all comes down to timing. Of course, in the long term, it wouldn’t be great for the company, especially if it did not have two things going on right now: a slightly lagging delivery pace and the introduction of affordable models.
Tax Credit Sunsetting Advantage
Sunsetting the $7,500 tax credit means one thing: those who have been in limbo over buying an EV from Tesla are going to have to make a decision on whether they want to buy this year and still have access to the credit, or test their luck and hope for price reductions.
More than likely, those who have been on the fence will be willing to pull the trigger this year, and Tesla will definitely gain some sales from this fact alone. Other automakers will, too.
This could help offset Tesla’s slow start to the year, which has been caused by the changeover of production lines of the Model Y across each of its factories globally.
Affordable Models
Tesla said earlier this year that it will roll out affordable models in the first half of 2025. These cars are expected to be around the $30,000 mark, but the company has not shed any true information on what they will cost.
Ideally, the cars would cost under $30,000 without the EV tax credit, which would be more than accessible for many car buyers in the United States.
The introduction of models that are not in need of a tax credit to be affordable to the masses. This would help offset some of the losses Tesla might feel from cars losing the tax credit.
Elon Musk
Tesla Robotaxi launch draws attention from regulators, mainstream media milks it
The Tesla Robotaxi launch has resulted in some questions from the NHTSA, a typical thing for early launches. Media is milking it as a huge thing.

Tesla launched its Robotaxi platform in a limited capacity earlier this week in Austin, Texas, and after hundreds of rides have been taken, some instances have caught the attention of the National Highway Traffic Safety Administration (NHTSA).
However, the information the NHTSA is requesting is routine and totally normal for the early stages of a rollout of this magnitude. But that did not stop mainstream media from milking it into something controversial, when it really is not.
Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch
Various outlets reported on the NHTSA’s request to Tesla for additional information regarding things seen in videos online.
The NHTSA said it is “aware of the referenced incidents and is in contact with the manufacturer to gather additional information.” Bloomberg initially reported on the NHTSA’s request for information.
The thing is, the NHTSA has often reached out to companies right after it launches a driverless vehicle service. Both Waymo and GM’s Cruise, as well as Amazon’s Zoox, have had the NHTSA reach out to them regarding the launch of their driverless ride-hailing services.
The headlines for Tesla are significantly different:
- “Tesla’s Robotaxis Have Already Caught this US Safety Agency’s Attention“
- “Tesla’s Robotaxis have already caught the attention of federal safety regulators“
- “US safety regulators contact Tesla over erratic robotaxis“
Reviews from riders in Austin have stated the Robotaxi platform is “smooth” and “comfortable,” with many ranting and raving about the advantages the new ride-hailing service has over others. Not only is it being monitored by a safety monitor in the passenger seat, but there are also other things that make it unique.
One of the most notable is that your Robotaxi will automatically sync entertainment and streaming settings.
The sensationalism that the media tends to use with Tesla is a big reason the company did not invite mainstream outlets to the event. Instead, reporters were seen waiting for Early Access invitees to exit their cars to ask them questions.
Many denied the inquiries:
“Can I talk to you, I’m with Reuters”
> No
🤣🤣 @BeardedTesla @SawyerMerritt pic.twitter.com/jGUdakGzx1
— Robin (@xdNiBoR) June 22, 2025
Elon Musk responded to that video by saying “Lmao,” an acronym for “laughing my ass off.”
Elon Musk
Elon Musk commends Tesla team on successful Robotaxi launch
Tesla CEO Elon Musk commended the company on the successful launch of Robotaxi.

Tesla CEO Elon Musk commented on the company’s launch of the Robotaxi platform, which officially went live to a small group on Sunday in Austin, Texas.
It is the first time Tesla has offered driverless rides through the ride-hailing platform it has worked to activate for several years, and it was overwhelmingly successful based on early reviews.
The launch was coupled with the release of the first-ever looks at the Tesla Robotaxi app, which does more than allow riders to summon vehicles for transportation. It also allows the rider to adjust climate settings in the car before it arrives for a comfortable ride, and it will sync entertainment and streaming settings to keep occupants entertained.
Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch
The first rides are being performed with a safety monitor in the passenger’s seat. These monitors have no control over the vehicle, and are there just to ensure smooth operation.
The first reviews called rides “smooth” and “comfortable,” and commended Tesla for its hard work over the past few years to make this happen. Many were impressed with the cars’ ability to keep pedestrians safe, avoid congested parking lots, and the efficiency of the rides, as the time from the ride request to the Robotaxi accepting the ride was extremely fast.
Musk has been at the forefront of this operation for a decade, as Tesla has been working to release a version of the Robotaxi through the development of Full Self-Driving. This has been an effort that included seeking top-tier engineering talent and taking incredible leaps of faith, including switching to a Vision-only approach for Full Self-Driving.
Musk commended the Tesla team for its hard work:
Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!!
Culmination of a decade of hard work.
Both the AI chip and software teams were built from scratch within Tesla.
— Elon Musk (@elonmusk) June 22, 2025
It’s truly an incredible accomplishment, as many considered Robotaxi a “failure” despite it not even being rolled out. In May, we reported on media outlets calling the Robotaxi rollout a total failure, despite Tesla always maintaining the launch would happen in June:
Tesla Robotaxi deemed a total failure by media — even though it hasn’t been released
Hundreds of rides have already been taken, and there have not been many complaints. It’s an incredible jump forward for Tesla.
Elon Musk
Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch
The first reviews of Tesla Robotaxi are in, and those riders are impressed and astounded with the smooth and comfortable nature of the service.

Tesla Robotaxi riders are touting their awesome experiences in their first rides using the automaker’s new driverless ride-hailing service, which launched to a limited number of people yesterday for the first time.
On Sunday, Tesla officially launched Robotaxi, its driverless ride-hailing service, in downtown Austin. A select group of people were chosen to receive early access to the program, as well as the new Robotaxi app, which is used to request a ride and will sync everything from climate preferences to streaming settings with each pickup.
Teslarati gained access to the Early Access riders program and the Robotaxi app, giving us a first-hand look at the experience. We will be in Austin soon to test out the Robotaxi fleet for ourselves.
However, those who were there for the initial rides on Sunday had nothing but great things to say. Hundreds of rides were taken during the first hours of the Robotaxi program, and neither the company nor the riders reported any issues.
Here’s what people said about their experiences:
- “Extremely smooth stops,” and great awareness of road conditions, including pedestrians, speed bumps, and busy parking lots, were all handled with ease:
Robotaxi slows down really nice for speed bumps. Extremely smooth stops as well pic.twitter.com/H8R2pXllWB
— Zack (@BLKMDL3) June 22, 2025
- Safe navigation around pedestrians who walked just off the sidewalk into the road:
Tesla Robotaxi stops for a man who veered off the sidewalk and onto the road as @JoeTegtmeyer and I were approaching Zilker Park earlier today. The stop was smooth and our Tesla Robotaxi allowed him to get back on the sidewalk and continue with our journey. This man is likely… pic.twitter.com/fozP6A7esK
— JC Christopher (@JohnChr08117285) June 23, 2025
- “Just as good as it is during the daytime” at night. There were no changes to report by riders who took rides during the day and evening:
Here is my experience in one of the first public nighttime @Tesla Robotaxi rides. It was smooth, comfortable and just as good as it is during the daytime. pic.twitter.com/7bDvVaWf3A
— Sawyer Merritt (@SawyerMerritt) June 23, 2025
- Avoided expensive and stressful parking at local tourist hotspots like Terry Black’s Barbeque:
Here’s a huge benefit of Tesla Robotaxi-
Dropped us off in front of Terry Blacks, crazy hard to find parking here, yesterday it took me almost 30 minutes to find a spot and today, I got dropped off right in front.
Didn’t have to pay for parking either. Game changing. @robotaxi pic.twitter.com/yZjQ8u4s8X
— Zack (@BLKMDL3) June 22, 2025
- “Comfortable and similar to existing Tesla cars with FSD,” intuitive and “surreal” experience:
My thoughts after 3 Robotaxi rides:
– Very smooth and comfortable. Similar to existing Tesla cars with FSD.
– App UI is intuitive but can use a couple upgrades (placing a pin anywhere, change trip while in car)
– It is completely and totally surreal.As a Tesla owner and…
— Farzad (@farzyness) June 22, 2025
- The app is quicker than other ride-sharing services. When a destination is chosen, Robotaxi is already on the way to your location:
My thoughts after 13 Robotaxi rides.
-Driving is very comfortable. It feels similar to our FSD, but braking is even better.
-The app is super fast, pick a destination and the robotaxi is simultaneously on the way.
-Yes our cars do well on FSD, but no one in the driver seat,… pic.twitter.com/pkuaXVxuMP
— Dirty Tesla (@DirtyTesLa) June 23, 2025
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