Trump, Elon Musk Clash Over Tax Bill

In a dramatic unraveling of what was once seen as a powerful alliance, tech mogul Elon Musk and US President Donald Trump have publicly clashed over the recently proposed “One Big Beautiful Bill” (OBBB), a sweeping tax and spending package championed by Trump’s administration.

The feud erupted after Musk condemned the OBBB as a “disgusting abomination,” pointing to its projected $2.4 trillion deficit impact and, more critically for him, the removal of electric vehicle (EV) incentives that directly affect Tesla. The bill, which the administration touts as a bold economic reform, has instead been met with Musk’s fierce opposition and sharp public criticism.

What really bothers Musk is that the bill removes tax breaks and incentives for electric vehicles, which directly hurts Tesla, his company. He also believes the bill will add a massive $2.4 trillion to the U.S. debt, which he thinks is reckless. Musk is frustrated that despite once advising Trump, he wasn’t shown the full bill before it was released. On top of that, he’s annoyed that Trump rejected his recommendation for a new NASA chief simply because the person is a Democrat.

Trump, in turn, expressed his disappointment, accusing Musk of political betrayal and ingratitude. He alleged that Musk only turned against the bill after stepping down from his advisory role as head of the Department of Government Efficiency (DOGE). In what appears to be a retaliatory move, Trump threatened to slash Tesla’s substantial government contracts and subsidies, a statement many believe could have major implications for Musk’s empire.

The dispute, however, didn’t end at policy. It spilled onto social media where Musk fired back, claiming he was never shown the full bill before its release. He went further to suggest that his financial support was instrumental in Trump’s 2024 re-election, saying, “Without me, he would’ve lost. Democrats would be running everything.”

Musk also aired his frustration over Trump’s rejection of his recommendation to appoint billionaire astronaut Jared Isaacman as NASA administrator. Trump allegedly dismissed the suggestion solely because Isaacman is a Democrat, a move Musk considered shortsighted and partisan.

The rift has stirred unease within Republican ranks, as several lawmakers now echo Musk’s concerns, particularly over contentious sections of the bill such as the rollback of SALT deduction caps.