Trump and Musk Clash Over Tax Bill in Public Feud
Washington: A public rift has emerged between U.S. President Donald Trump and Tesla CEO Elon Musk, centered on Trump’s sweeping tax and spending legislation. Musk has sharply criticized the bill, labeling it a “big beautiful tax bill” that he believes will harm the nation’s finances. In response, Trump took to his Truth Social platform to defend the legislation, describing it as a historic $1.6 trillion expense cut and the largest tax reduction ever proposed, while dismissing Musk’s objections.
Trump remarked that he was unbothered by Musk’s opposition, suggesting the billionaire should have voiced his concerns earlier. The President also claimed Musk was privy to the bill’s details, a statement Musk swiftly denied on his X platform, asserting the legislation was “never shown to me even once” and was rushed through Congress. The bill, a cornerstone of Trump’s second-term agenda, has sparked tensions due to its proposed elimination of electric vehicle tax credits, which directly impacts Tesla’s business.
The dispute escalated when Trump suggested terminating government subsidies and contracts tied to Musk’s companies, stating it would save billions. Musk, who previously led the Department of Government Efficiency (DOGE) under Trump, has urged lawmakers to reject the bill, warning it could increase the federal deficit by $2.5 trillion over a decade. The legislation, already passed by the House, now faces a contentious Senate vote.
The fallout has rattled investors, with Tesla’s stock dropping over 8% on Thursday, erasing $150 billion in market value, according to Reuters. Analysts attribute the decline to fears that the deteriorating relationship between Trump and Musk could jeopardize Tesla’s government-backed incentives. House Speaker Mike Johnson called Musk’s criticism “very disappointing,” while White House Press Secretary Karoline Leavitt downplayed the dispute, stating it would not alter Trump’s policy direction.
Musk’s vocal opposition follows his recent departure from DOGE, where he aimed to slash federal spending but faced controversy and failed to achieve significant savings. Despite their once-close alliance, marked by Musk’s $300 million contribution to Trump’s campaign, the two now appear at odds, with Musk resharing Trump’s 2013 X post criticizing debt ceiling increases to underscore his stance.