Tesla Warns of Pain From Trump’s Tax Bill That Elon Musk Blasted

Tesla Inc. warned that provisions in President Donald Trump’s $3.4 trillion fiscal package will pose meaningful challenges for the EV maker in the next several months.

The legislation eliminated civil penalties that automakers had been required to pay US regulators that oversee US fuel economy requirements. That will hurt Tesla’s sales of regulatory credits to rival automakers — long a key source of revenue and profit for the EV maker — and “lead to lower earnings,” Chief Financial Officer Vaibhav Taneja said during the company’s second-quarter earnings call Wednesday.