The billionaire CEO of Tesla and SpaceX, Elon Musk, ranted on Twitter about former President Donald Trump’s new domestic policy proposal, saying it was “anti-growth” and that it would damage American tech leadership. The bill — a bid to help the United States win the future of manufacturing — gets the U.S. tax code right and puts the screws to tech companies.
What the Bill Proposes
The bill, introduced as the “American Industrial Renewal Act,” centers around renewing coal and steel, and auto manufacturing companies through tax incentives and subsidies. But it also lays out tighter antitrust policies for big tech companies and restricts the size of tax deductions for research and development (R&D) in artificial intelligence and renewable energy, two vital domains for Musk’s companies.
Musk’s Main Complaints
In a barrage of posts to his social media app X (previously called Twitter), Musk has argued that the bill props up old industries at the expense of new ones. He cautioned that the removal of (R&D) incentives could make tech investment move overseas and erode America’s lead on the world stage. “This is how you lose the future,” he wrote.
Trump’s Team Fires Back
Musk was “protecting his monopolies” by not respecting the ground game, Trump’s campaign spokesman said, and he wasn’t in touch with blue-collar workers. They emphasized that the bill is designed to generate jobs in depressed industrial towns, not just the cities of Silicon Valley. “Elon loves Mars, but we love Michigan,” the statement reads.
How Other Tech Leaders Are Responding
Though some executives quietly agree with Musk, most of the big tech CEOs have kept quiet, seeking to avoid a public brawl with Trump, who is the early leader in the 2025 election polls. But startup founders, alongside venture capitalists alike, have parroted Musk’s concerns, worrying that less cash will be available for advanced technologies.
Political Divides Over the Bill
Democrats themselves remain divided, with progressives lauding the worker-focused policies but criticizing the environmental rollbacks for fossil fuel companies. Republicans overwhelmingly support the bill, characterizing it as a return to “real economy” work. The dispute illustrates the increasingly strained relations between tech elites and their more traditional manufacturing counterparts.
Potential Impact on Musk’s Companies
Tesla could be stripped of R&D tax credits for the development of batteries and AI, while SpaceX could face difficulties securing government contracts if the funding it relies on were to be redirected from space ventures in the package. Musk indicated he may speed up plans to move some operations abroad if the policy is passed.
Public Opinion Divided
Polls show industrial-state voters overwhelmingly in favor of the bill, while tech hubs like California and Texas are opposed. The schism is part of a larger debate about whether the United States should focus its attention on breathing life back into aging industries or redoubling its vow to dominate the cutting-edge tech industry.
What Happens Next
The bill is still in its nascent stages of negotiation, and Musk’s critique may rally opposition from libertarians and tech advocates. Lobbyists on both sides are streaming into Capitol Hill, creating a major showdown over the direction of America’s economy ahead of the 2026 midterm elections.
