POLITICO Energy Why the GOP threat to Tesla goes beyond electric vehicles
Jun 9, 2025
Elon Musk's recent clash with Trump raises questions about Tesla's future as Republicans debate a bill that could impact its solar and battery businesses. The discussion highlights how potential losses in electric vehicle tax credits may stifle innovation and growth in the solar market. Additionally, the tension between electric vehicle leaders and political factions reflects broader challenges in addressing climate change, especially with new regulations that ignore electric vehicles. It’s a turbulent time for clean energy advocates.
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Tesla's Solar Division at Risk
- Tesla's solar and battery division is a significant yet often overlooked part of the company.
- The upcoming Republican reconciliation bill could heavily impact this division through tax credit eliminations and restrictions on solar leasing.
Impact of Removing Solar Incentives
- Removing incentives for residential solar and battery storage could cripple rooftop solar growth.
- Solar leasing companies would lose the ability to claim credits, affecting Tesla and the entire solar market.
Tesla's SolarCity Origins and Products
- Tesla's solar business originated from SolarCity, a company started by Elon Musk's cousins.
- Its solar roof tiles offer an aesthetic alternative to traditional panels and had a strong revenue year.