**Elon Musk Slams Trump's Spending Bill: Tesla Faces Potential Setbacks While AI Company Might Prosper**

Elon Musk has voiced harsh criticism against President Donald Trump's "Big Beautiful Bill," which could have a mixed impact on his diverse array of businesses. While Tesla could face significant challenges, other ventures such as xAI might find new opportunities.

The GOP’s federal spending bill, if enacted, would severely affect many of Musk's companies that rely heavily on federal regulations, subsidies, and contracts. Musk intensified his criticism of the bill this week, expressing his frustrations on social media. "I'm sorry, but I just can't stand it anymore," Musk posted on X. "This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination." He further chastised Republican lawmakers who backed the bill, asserting they had acted wrongly.

This sharp rebuke from Musk comes shortly after his departure from his role at the DOGE office, concluding his formal duties at the White House. Despite this, both Trump and Musk have reassured the public of their ongoing relationship, even though they disagree on some policies.

The proposed bill introduces significant alterations, such as cuts to Medicaid and extensions of tax cuts from Trump’s first term in 2017. It also plans to remove taxes on tips and overtime. The impact on Musk's companies would be varied, with Tesla potentially facing substantial losses, while SpaceX and xAI could benefit.

One of the most controversial aspects of the bill is its impact on electric vehicle (EV) tax credits. The legislation aims to phase out the clean vehicle credit, which currently allows buyers to claim up to $7,500 for new EVs and up to $4,000 for used ones. This provision would cease for automakers who have sold more than 200,000 eligible EVs, a milestone Tesla surpassed in just the first quarter of 2025.

Musk has warned that the elimination of the EV tax credit would harm not only Tesla but its competitors. Nevertheless, he believes that Tesla might ultimately benefit from this change in the long run. Financial analysts echo these concerns, with Morningstar's Seth Goldstein and JPMorgan’s Ryan Brinkman predicting significant financial headwinds for Tesla. Brinkman highlighted that the removal of tax credits could slice into over half of Tesla's projected 2025 profits.

In addition to the EV tax credit issue, the bill would also impose new annual fees for EV and hybrid vehicle drivers and end a loan program that Tesla utilized in 2010. Furthermore, it threatens to cut energy tax credits, vital for Tesla's rapidly growing energy business.

Though Trump's plan poses risks for Tesla's immediate profitability, it might expedite the company’s ongoing pivot towards AI and robotics. Analysts suggest that this transition could eventually align with Musk's vision for Tesla's future, although the financial benefits from such ventures seem years away.

As the debate over the spending bill continues, the future for Musk's ventures remains uncertain, hinging on potential legislative changes and evolving market dynamics.