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Without Biden-Era EV Credits, Tesla's Historically Low Profits Would Have Been Even Lower
"Tesla is a carbon credit company that has a couple of cars for sale," cracked one observer.
Apr 22, 2025
Already facing the quandary of leading the nation's largest electric vehicle maker while working as a senior adviser to EV-inimical, "drill, baby, drill" U.S. President Donald Trump, Tesla CEO Elon Musk was confronted Tuesday with the awkward reality that, absent zero-emissions tax credits implemented during the Biden administration, his company would not have made any profit during the first quarter.
In fact, Tesla would have posted a Q1 loss without the $595 million in EV tax credits, according to reporting by TechCrunch. Earnings figures released by Tesla showed $409 million in net quarterly profit, a brutal 71% plunge from a year ago. These figures follow Tesla's first-ever year-to-year sales decline. The company's stock price has also plummeted more than 50% since December.
As Splinter editor-in-chief Jacob Weindling quipped on Bluesky, "Tesla is a carbon credit company that has a couple of cars for sale."
Tesla earned $10.7 billion selling climate compliance tax credits over the past decade—a total that accounted for a third of the company's profits during that period—according to an analysis published earlier this year by Politico's E&E News. Ironically, Trump has threatened to pull the plug on some of the taxpayer-funded credits that helped make Musk the world's richest person.
"It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure, and demand for durable goods and related services," Tesla said in a recent letter to investors. "While we are making prudent investments that will set up both our vehicle and energy businesses for growth, the rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories, and the broader macroeconomic environment."
Tesla was already struggling before Musk—who poured hundreds of millions of dollars into Trump's 2024 campaign coffers—was tapped by the president to be the de facto head of the highly controversial Department of Government Efficiency, or DOGE. Factors including Trump's tariff whiplash, growing public revulsion at Musk and his brands, and the rise of competitors like China's BYD, the world's leading EV manufacturer, have played roles in Tesla's floundering fortunes.
"The more political he gets with DOGE, the more the brand suffers—there is no debate," Dan Ives of Wedbush Securities said earlier this month in a note to investors. "This continues to be a moment of truth for Musk to navigate this brand tornado crisis moment."
On a Tuesday call with jittery investors, Musk defended his DOGE work and said that people protesting his role in the government-eviscerating agency were "paid." However, Musk added that he would start shifting his time and attention back to Tesla "I think starting probably next month."
Earlier this month, dozens of House Democrats demanded that Trump "stop ignoring federal law and ethics rules to empower an unelected billionaire" and fire Musk by the end of May.
Ross Gerber, CEO of the investment firm Gerber Kawasaki, said on social media Tuesday: "I've done Tesla calls for 11 years. This is the worst performance I've seen in Tesla's history."
"I get Elon will tell everyone about trillions in [total addressable market] and robots taking over the world," he added, "anything to get you not to look at the facts."
New York City Councilmember Justin Brannan (D-47)—who
wants to divest the more than $1 billion that municipal pension funds have invested in Tesla—said Tuesday that the company's earnings "tanked because consumers are done with Elon Musk playing Trump's sidekick and backing cuts to seniors and working families."
"It's not just against NYC values," Brannan added. "Tesla is now a bad investment. We need to divest our city pensions from Tesla."
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Trump Admin Will Garnish Struggling Borrowers' Wages as Student Loan Payments Resume
"This is just cruel and doesn't have to happen," said the Debt Collective.
Apr 21, 2025
The Trump administration on Monday announced that it will resume involuntary collection measures against defaulted federal student loan recipients, including garnishing wages, tax refunds, and Social Security benefits and "other actions to help borrowers get back into repayment," as the U.S. Department of Education euphemistically said.
"Resuming collections protects taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education," DOE said in a statement notifying the public that collections will resume May 5. "This initiative will be paired with a comprehensive communications and outreach campaign to ensure borrowers understand how to return to repayment or get out of default."
The DOE said the U.S. Treasury Offset Program will administer borrower garnishments, which are expected to resume this summer.
DOE continued:
While Congress mandated that student and parent borrowers begin to repay their student loans in October 2023, the Biden-Harris administration refused to lift the collections pause and kept borrowers in a confusing limbo. The previous administration failed to process applications for borrowers who applied for income-driven repayment and continued to push misguided "on-ramps" and illegal loan forgiveness schemes to win points with borrowers and mask rising delinquency and default rates.
"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," billionaire U.S. Education Secretary Linda McMahon said on Monday.
The repayment resumption is part of the Trump administration's three-pronged, $1.6 trillion overhaul of the federal student loan system. In addition to moving to collect on defaulted loans, the administration is looking to end former President Joe Biden's Saving on a Valuable Education (SAVE) plan, an income-driven repayment program currently blocked by a federal appellate court. President Donald Trump also signed an executive order narrowing eligibility for the Public Service Loan Forgiveness program.
Last month, the American Federation of Teachers led a lawsuit against the Trump administration after the DOE cut off access to income-driven repayment plan applications and secretly ordered student loan services to stop accepting and processing such applications.
The government has not collected on defaulted student loans since March 2020, when the first Trump administration paused repayments due to the burgeoning Covid-19 pandemic. The reprieve, which was subsequently extended several times, was set to end in September 2023. Efforts by the Biden administration to forgive some or all loan debt for more than 45 million student borrowers were thwarted by the right-wing U.S. Supreme Court in 2023.
"The Biden administration misled borrowers: The executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear," said McMahon. "Hundreds of billions have already been transferred to taxpayers."
"Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment—both for the sake of their own financial health and our nation's economic outlook," she added.
As McMahon and the Trump administration work toward ending the DOE—a key goal of Project 2025, the Heritage Foundation-led plan to eviscerate the federal government—Trump has ordered the administration of federal student loans to be transferred to the Small Business Administration (SBA), which was headed by McMahon during Trump's first term.
Approximately 5.6 million student borrowers were in default at the end of 2024. The DOE warns that "there could be almost 10 million borrowers in default in a few months" after repayments resume. That's roughly 25% of the current student loan portfolio. Failure to make timely student loan repayments results in lower credit scores for borrowers, who in turn generate less economic activity—a domino effect with implications for the entire slowing U.S. economy.
"They bailed out banks, corporations, and airlines. But when it comes to student debt? Suddenly it's 'too expensive.'"
"Many of the households required to resume paying on their student loans are also struggling with credit card debt at near-record interest rates and high-rate mortgages they thought they would be able to refinance into a lower rate, but haven't," explained Moody's Analytics chief economist Mark Zandi in a Monday interview with The New York Times.
Some critics slammed the Trump administration for resuming student loan repayments amid an affordability and housing crisis during which a record number of people are unhoused.
"Parents delaying retirement. Grads postponing families. This isn't 45 million separate problems, it's one national crisis," the Student Debt Crisis Center (SDCC) said on social media. "They bailed out banks, corporations, and airlines. But when it comes to student debt? Suddenly it's 'too expensive.'"
SDCC executive director Mike Pierce said that "federal law gives borrowers a way out of default and the right to make loan payments they can afford. Since February, Donald Trump and Linda McMahon have blocked these borrowers' path out of default and are now feeding them into the maw of the government debt collection machine."
"This is cruel, unnecessary, and will further fan the flames of economic chaos for working families across this country," Pierce added.
Tuition-free college would help make America great. Those who need loans to attend college come from working class families, the elites don’t need loans. 40% of student debt holders don’t hold a degree. This will hurt the working class.
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— Nina Turner (@ninaturner.bsky.social) April 21, 2025 at 2:07 PM
Others offered solutions enjoyed by people in other countries, including simply not collecting the debt and making colleges and universities tuition-free—even if their chances of implementation under what many leftists call U.S. "late-stage capitalism" are next to nil.
"If the Trump/Musk administration really wanted 'government efficiency,' then they wouldn't be collecting on debts people cannot and will not pay,"
said the Debt Collective, a debtors' union, referring to Elon Musk, who heads the Department of Government Efficiency. "They would just cancel it and boost the economy."
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'Dystopian' Trump Plan for Massive Expansion of ICE Detention Centers Exposed
"This expansion is a disastrous waste of billions of taxpayer dollars that will only line the coffers of the private prison industry," said one ACLU attorney.
Apr 11, 2025
The ACLU on Friday revealed new details about the Trump administration's plans to expand Immigration and Customs Enforcement detention centers in 10 states across the nation, with private prison corporations—whose share prices soared after the election of President Donald Trump—seeking to run at least a half dozen proposed ICE facilities.
The documents, obtained via a Freedom of Information Act request, "signal a massive expansion of ICE detention capacity—including at facilities notorious for misconduct and abuse—which echo reports earlier this week that the Trump administration has sought proposals for up to $45 billion to expand immigrant detention," ACLU said.
"The discovery also comes on the heels of a 'strategic sourcing vehicle' released by ICE earlier this month, which called for government contractors to submit proposals for immigration detention and related services," the group added.
The more than 250 pages of documents obtained by the ACLU "include information regarding facility capacity, history of facility use, available local transport, proximity to local hospitals, immigration courts, and transport, as well as access to local consulates and pro bono legal services."
"Specifically, the documents reveal that Geo Group, Inc. (GEO) and CoreCivic submitted proposals for a variety of facilities not currently in use by ICE," ACLU said.
These include:
- McFarland Detention Center in McFarland, California;
- California City Correctional Center in California City, California;
- North Lake Correctional Center in Baldwin, Michigan;
- Midwest Regional Reception Center in Leavenworth, Kansas;
- Lea County Detention Center in Hobbs, New Mexico; and
- South Texas Family Residential Center in Dilley, Texas.
GEO, CoreCivic, and Management Training Corporation (MTC) "also sought to renew contracts at current ICE detention facilities" in California, Nevada, New Mexico, Texas, and Washington, according to the files.
"The documents received provide important details regarding what we have long feared—a massive expansion of ICE detention facilities nationwide in an effort to further the Trump administration's dystopian plans to deport our immigrant neighbors and loved ones," said Eunice Cho, senior staff attorney at the ACLU's National Prison Project.
"This expansion is a disastrous waste of billions of taxpayer dollars that will only line the coffers of the private prison industry," Cho added.
Indeed, GEO shares have nearly doubled in value since Trump's election, while CoreCivic stock is up 57% over the same period.
Unlike state prisons or country and local jails, which are accountable to oversight agencies, privately operated ICE detention centers are not subject to state regulation or inspection. And although Department of Homeland Security detainees are not convicted criminals and ICE detention centers are not technically prisons, the facilities are plagued by a history of abuse, often sexual in nature, and sometimes deadly.
During Trump's first term, groups including the ACLU sounded the alarm on the record number of detainee deaths in ICE custody, and scandals—including the separation of children from their parents or guardians and forced sterilization of numerous women at an ICE facility in Georgia—sparked widespread outrage and calls for reform from immigrant rights defenders.
However, abuses continued into the administration of former President Joe Biden, including "medical neglect, preventable deaths, punitive use of solitary confinement, lack of due process, obstructed access to legal counsel, and discriminatory and racist treatment," according to a 2024 report published by the National Immigrant Justice Center. Biden also broke a campaign promise to stop holding federal prisoners and immigration detainees in private prisons.
Since Trump took office in January after being elected on a promise to carry out the largest deportation campaign in U.S. history, fresh reports of ICE detainee abuse and poor detention conditions have been reported. These include
alleged denial of medical care, insufficient access to feminine hygiene products, and rotten food at the South Louisiana ICE Processing Center in Basile, Louisiana, where Tufts University Ph.D. student and Palestine defender Rümeysa Öztürk is being held without charge.
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