Elizabeth Warren calls out Tesla’s tax bill, and the numbers are raising eyebrows

Senator Elizabeth Warren is calling out Tesla over its federal tax payments, citing a report that claims the electric vehicle maker paid no federal income taxes in 2025. The criticism is drawing renewed attention to how large corporations account for profits and tax obligations.

As reported by Yahoo Finance, Warren posted on X questioning whether it was fair that Tesla paid nothing in federal income taxes last year. Her post included an image stating the company paid “$0.00” in federal income taxes for 2025.

The story gained traction after a January 29 report from the Institute on Taxation and Economic Policy analyzed Tesla’s publicly available financial filings. The Washington, DC based nonprofit outlined how the company’s tax liability was calculated and what it ultimately paid.

The report outlines how Tesla’s tax liability was calculated

According to the Institute on Taxation and Economic Policy, Tesla received more than $1.1 billion in federal income tax breaks. The group said the company paid “precisely zero” in current federal income taxes for 2025.

Over a three year period, the report states Tesla paid $48 million in federal income taxes on $12.58 billion in U.S. income. While Tesla did pay more than $28 million in cash taxes in 2025, the report notes those payments may have applied to prior tax years rather than current year earnings. A separate piece also noted Tesla Autopilot marketing changes.

The report’s findings contrast with past public statements from Tesla CEO Elon Musk about his personal tax payments. Musk previously claimed he paid so much in taxes in a single year that it overwhelmed IRS processing systems due to the number of digits involved.

The broader debate over corporate and individual tax policy continues as lawmakers in various states consider changes to wealth taxation. In California, a proposed one-time 5 percent wealth tax would apply to individuals with a net worth exceeding $1 billion, and the measure is currently seeking more than 900,000 signatures to qualify for consideration. In the Senate, an election overhaul bill milestone has also been a focus of recent attention.