Senator Elizabeth Warren has launched a fierce attack on Tesla Inc. for paying zero federal income taxes in 2025, calling the practice unfair to ordinary taxpayers. In a post on X, Warren shared data showing Tesla paid $0.00 in federal income taxes last year while receiving over $1.1 billion in federal tax breaks.

Warren's claims are backed by The Institute on Taxation and Economic Policy, which analyzed Tesla's financial data showing the company paid just $48 million on $12.58 billion in U.S. income over three years. While Tesla did pay $28 million in cash taxes in 2025, this likely relates to prior tax years. The Massachusetts Democrat's criticism comes amid broader debates about wealth inequality and corporate tax avoidance.

The controversy highlights the growing political tension around corporate taxation, particularly for companies led by billionaires like Elon Musk. Warren's attack follows Musk's previous claim that his tax payments 'broke' the Internal Revenue Service system due to the sheer volume. Meanwhile, California's proposed wealth tax targeting billionaires with net worths above $1 billion has sparked further debate about tax fairness in America.