Hey folks, Nuked here! Today, let’s dive into how Tesla is lobbying the Senate to save its booming energy division.

Tesla’s energy division has become a bright spot, generating $2.7 billion in the first quarter—a 67% rise from last year. This growth depends heavily on government incentives like tax credits for solar and clean energy projects, which the House Republicans aim to削除.

If the Senate approves a bill to undo parts of the Inflation Reduction Act—specifically the solar and energy credits—Tesla warns it could seriously harm their energy efforts. The company advocates for a phased approach, supporting a gradual wind-down to keep deployment at 60 GW annually for AI and domestic manufacturing growth.

Currently, homeowners can claim a 30% tax credit for solar installs, a benefit set to expire in 2032. However, some legislators want to bring this expiration forward by four years, potentially disrupting the solar industry and Tesla’s energy ambitions.

Elon Musk’s recent stance indicates he believes his time in government service has ended. Tesla has now turned to social media platform X to lobby Senate Republicans directly, emphasizing that ending energy tax credits would jeopardize America’s energy independence and grid reliability.

Slowing renewable deployment risks undermining what’s already a significant portion of U.S. new power capacity—93% last year, mainly solar and storage—and could stall the progress of renewable energy projects, which are quicker to complete compared to natural gas turbines.

Since much of Tesla’s energy revenue stems from government incentives, attempts to repeal these benefits have caused negative impacts on related stocks like Enphase, Sunrun, and First Solar.

In essence, Tesla’s plea highlights the delicate balance between legislative policy and the growth of clean energy, with the company’s future growth tied closely to government support.