Elon Musk
Will Tesla thrive without the EV tax credit? Five reasons why they might
Here are five reasons Tesla might be in better shape without the tax credit being available.

The $7,500 EV tax credit has officially expired, as it came to its closure at midnight on September 30. Many are wondering what will happen to the EV makers in the United States that had a huge competitive advantage over their competitors, a $7,500 discount that could be applied at the point of sale.
Tesla stands to thrive from the lack of tax credit, and although it is hard to believe, brighter days could be ahead for the company, starting with Q4, which began today.
Here are five reasons Tesla might be in better shape without the tax credit being available:
No Tax Credit Means Price Cuts
Tesla has to adjust its pricing strategy now that the $7,500 tax credit is gone, and when it lost the previous tax credit after reaching its cap in 2019, it used a more affordable model to surge sales. At the time, that more affordable model was the Model 3.
Tesla boosted deliveries by over 50 percent that year without any tax credit by simply offering a cheaper model. The credit, in a way, distorts the market, and companies, while attempting to innovate, are able to offer the discount with the help of the government.
Tesla price cuts push EV market toward affordability with broader influence
Companies will now have to weigh what they can discount their vehicles by to keep profits reasonable, but also stoke demand.
Ultimately, Tesla has the ability to use manufacturing and technological efficiencies to increase affordability. It has more control to fluctuate pricing, and price cuts could be on the way.
The Playing Field Becomes Fairer
Companies like Ford and General Motors have also reaped the benefits of the tax credit, but their situation is much different than Tesla’s.
Ford and GM are not profitable on their EV projects, so the EV tax credit has been relied upon to mask high production costs and dealer markups, which have widely impacted their demand. Ford is among the more popular brands that have dipped their toes into the EV market, but they have been forced to adjust their strategy on several occasions due to a lack of profits.
Tesla’s vehicles have been profitable for some time, and the company has been able to make money from its offerings faster. Cybertruck was profitable after just one year of production.
Tesla Cybertruck achieves positive gross margin for first time
Removing subsidies will expose the financial weaknesses of those domestic competitors, and we will likely see those companies scale back their EV efforts in the coming months and years. This will help Tesla more than having access to the tax credit would, which is something CEO Elon Musk has said for years:
First of all, Tesla hasn’t had that consumer tax credit for years & we didn’t ask for this one – GM & Ford did
— Elon Musk (@elonmusk) October 6, 2022
In my view, we should end all government subsidies, including those for EVs, oil and gas
— Elon Musk (@elonmusk) November 14, 2024
Tesla’s Maturity Shows and Investor Confidence Will Boost
Tesla was once dismissed as a subsidy-dependent startup, but that narrative truly died years ago, as it continued to perform well against competitors even after losing the tax credit.
Musk has said himself that the cancellation of these subsidies “will only help Tesla,” as it will highlight the company’s ability to be self-sufficient.
Elon Musk reiterates call for all subsidies on all industries to be removed
Using things like manufacturing efficiencies and vertical integration, Tesla has been less dependent than others on help to build its cars. If anything, investors will likely see the next few months as a make-or-break period for companies building EVs.
Subsidies Sometimes Can Inhibit True Innovation
Some companies can tend to become complacent when government subsidies are offered on their products. Instead of making things better and trying to find new ways to make cars more affordable, some can lean on the help they’re getting.
After subsidies ended for Tesla in 2019, the company achieved two major breakthroughs: the Cybertruck and its energy storage projects scaled to gigawatt-hours. The argument is not that Tesla becomes complacent with the tax credits, but the company is going to feel more pressure to fight for innovation now that its back is up against the wall.
It already offers a better product from a tech standpoint, so affordability could truly be the next major change we see.
Affordable Models Will Be Even More Sought After
Tesla will launch its affordable models this quarter, and with no more tax credit to lean on, these new cars will be what many consumers go for.
If Tesla can launch a model that is close to $30,000 without a tax credit, the company stands to regain a significant portion of its market share from competitors that have eroded it over the past few years. This will undercut the vast majority of electric cars that are currently offered.
- 2025 Nissan Leaf S Trim – $28,140
- 2025 Fiat 500e Base Trim – $32,500
- 2025 Chevrolet Equinox EV – $33,600
Those are the three most affordable EVs available in the U.S. right now, and those prices are without the EV tax credit. If Tesla can get close to $30,000, it will truly make a mark and there might not be all that much of a change in its yearly delivery figures.
Elon Musk
Elon Musk hits back at former Tesla employee who disagrees with pay package
Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla?
It won’t be me.

Elon Musk gave a tough response to a former Tesla employee who spoke out on X about the structure of the CEO’s pay package, arguing that it is an overpayment and would not generate enough shareholder value.
Without a doubt, the biggest issue on the bill at this year’s Tesla Shareholder Meeting in November is that of the pay package that was proposed to CEO Elon Musk.
As the Shareholder Meeting approaches, Tesla is urging those investors to vote in support of Musk’s pay package. So far, the community has been overwhelmingly supportive of giving Musk his massive payday, which could give him $1 trillion in additional holdings if he completes each of the outlined performance tranches.
However, there are a handful of institutional and individual shareholders who have pushed back against the package, either because of its value or because they feel it does not benefit shareholders enough.
Last week, we reported that Institutional Shareholder Services (ISS) advised voting against Tesla’s pay package for Musk. The firm said the payday would give Musk”extraordinarily high pay opportunities over the next ten years,” and it would “reduce the board’s ability to meaningfully adjust future pay levels.”
Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
Additionally, it called the value of the pay package “astronomical.”
On Saturday, a former Tesla employee said on X that Tesla’s proposed pay package for Musk would “barely beat inflation and it would underperform the S&P 500 considerably.” Additionally, he said:
“Sorry, Tesla, some of us (and supposedly, ISS too) simply don’t think that underperforming the S&P 500 this much is worth paying somebody 20 billion dollars worth of company value.
As a fan, I love Tesla, I want it to succeed. As a shareholder, I don’t want Tesla to over-pay for its CEO I strongly believe that the 2025 pay package proposal would over-pay for its CEO, and that other competent CEOs could grow Tesla just as much with way less political drama and cost investors much less that this proposal.”
Musk responded bluntly:
“Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won’t be me.”
Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla?
It won’t be me.
— Elon Musk (@elonmusk) October 19, 2025
It seems the worry about Musk’s potential involvement in politics still looms to many, based on the responses to Musk’s post, which frequently mention that as a downside of his last year as Tesla CEO. However, Tesla’s Board confronted that directly.
In its proxy filing after announcing the pay package, Tesla said that it had three commitments, one of which was that the company would “receive assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”
Tesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy
Musk’s previous pay package was approved by shareholders twice, but it never made it to the CEO because of a lawsuit with the Delaware Chancery Court brought forth by a small-time shareholder.
The response from Musk does seem to show that if this time is no different, he will inevitably step down as CEO in the coming years.
Elon Musk
Elon Musk: Grok 5 now has a 10% chance of becoming world’s first AGI
If his prediction comes to pass, xAI could very well become yet another world-changing company from Elon Musk.

Elon Musk has shared his most optimistic forecast about Grok 5’s capabilities yet. In a recent post on X, Musk stated that he now believes that the upcoming update to xAI’s large language model has a 10% chance of achieving artificial general intelligence.
If his prediction comes to pass, xAI could very well become yet another world-changing company from Elon Musk.
Musk’s previous Grok 5 estimate
Just last month, Elon Musk estimated that xAI might have a chance at achieving artificial general intelligence with Grok 5. Musk’s comments at the time already made headlines, considering that no company in the world today has achieved AGI yet, though numerous AI startups today are actively pursuing artificial general intelligence.
In a recent post on X, Musk noted that his “estimate of the probability of Grok 5 achieving AGI is now at 10% and rising.” In another post, he also noted that “Grok 5 will be AGI or something indistinguishable from AGI.” Grok 5 is yet to be released, though Musk’s comments about the update are definitely setting expectations.
AGI will be world changing
Artificial General Intelligence (AGI) refers to an AI system that is capable of matching or surpassing human-level intelligence across tasks such as thinking, reasoning, and other domains by a notable margin, as noted in a previous report from Benzinga. With AGI achieved, industries from robotics to manufacturing would likely see a notable boost.
As per a report from the Center for International Relations and Sustainable Development (CIRSD), AGI could eventually pave the way for artificial super intelligence (ASI), which would be more intelligent than AGI and likely more intelligent than all of humanity combined.
Elon Musk
Tesla will launch driverless rides in Las Vegas, but not where you think
Elon Musk has a big update for Teslas that operate within the Boring Company’s Vegas Loop.

Tesla vehicles operating in the Boring Company’s Vegas Loop are about to get a big change, CEO Elon Musk said.
In Las Vegas, the Boring Company operates the Vegas Loop, an underground tunnel system that uses Teslas to drop people off at various hotspots on the strip. It’s been active for a few years now and is expanding to other resorts, hotels, and destinations.
Currently, there are stops at three resorts: Westgate, the Encore, and Resorts World. However, there will eventually be “over 100 stations and span over 68 miles of tunnel,” the Vegas Loop website says.
The Loop utilizes Tesla Model 3 and Model Y vehicles to send passengers to their desired destinations. They are now being driven using the Full Self-Driving suite, but they also have safety drivers in each vehicle to ensure safety.
Tesla Cybertruck rides are crucial for Vegas Loop expansion to airport
Tesla and the Boring Company have been working to remove drivers from the vehicles used in the Loop, but now, it appears there is a set timeline to have them out, according to CEO Elon Musk:
The Tesla cars operating in The Boring Company tunnels under Las Vegas will be driverless in a month or two https://t.co/mX4nNrJui9
— Elon Musk (@elonmusk) October 18, 2025
Musk says the Boring Co. will no longer rely on safety drivers within the Teslas for operation. Instead, Tesla will look to remove the safety drivers from the cars within the next month or two, a similar timeline for what Musk believes the Robotaxi platform will look like in Austin.
In Texas, as Robotaxi continues to operate as it has since June, there are still safety monitors within the car who sit in the passenger’s seat. They are there to ensure a safe experience for riders.
When the route takes the vehicle on the highway, safety monitors move into the driver’s seat.
However, Tesla wants to be able to remove safety monitors from its vehicles in Austin by the end of the year, Musk has said recently.
In early September, Musk said that the safety monitors are “just there for the first few months to be extra safe.” He then added that there “should be no safety driver by end of year.”
The safety driver is just there for the first few months to be extra safe.
Should be no safety driver by end of year.
— Elon Musk (@elonmusk) September 4, 2025
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