Tesla faces billions in losses due to Trump: FT

Tesla is on the brink of losing billions of dollars following the implementation of U.S. President Donald Trump’s tax bill, known as the One Big Beautiful Bill, Financial Times reports.

According to the publication, it is this specific clause — and not the growing budget deficit — that prompted Tesla CEO Elon Musk, one of the richest men in the world, to criticize the legislation.

The bill repeals the federal CAFE standard, which incentivized electric vehicle manufacturers at the expense of gasoline and diesel car makers. Thanks to this provision, Tesla earned $595 million in the first quarter of 2025. Without it, the automaker’s business would have turned unprofitable, the outlet notes.

Over the past year, Tesla received $2.8 billion under the standard, accounting for 39 percent of its total profit. One Tesla employee explained that some revenue may still be earned, but in the long term, this market has collapsed for the company.

Prior to this, Trump, responding to numerous attacks from Musk, had warned that he might consider deporting the billionaire to his historic homeland of South Africa and save federal funds by cutting off financing for his projects.