A dramatic rift has emerged between former President Donald Trump and Tesla CEO Elon Musk, signaling the collapse of a once-powerful political and business alliance. The feud, which has intensified over the past week, centers around Musk’s vocal opposition to Trump’s signature tax and spending legislation, known as the “One Big Beautiful Bill Act.”
The Catalyst: Disagreement Over the “One Big Beautiful Bill Act”
The conflict ignited when Musk criticized the bill for its elimination of electric vehicle (EV) tax credits, a move that directly impacts Tesla’s business model. Musk labeled the legislation a “disgusting abomination” and urged his followers to oppose it, citing concerns over the projected $2.4 trillion increase in the federal deficit over the next decade.
The President also threatened to revoke federal subsidies and contracts benefiting Musk’s companies, including SpaceX and Tesla.
Escalation: Personal Attacks and Political Ramifications
Musk’s tweet, which he later deleted, suggested that the release of these files was being delayed due to Trump’s involvement. The White House dismissed Musk’s claim as baseless.
Politically, the feud has caused a rift within the Republican Party. While some GOP lawmakers have sided with Trump, others have expressed support for Musk’s fiscal conservatism. This division has complicated efforts to pass the controversial bill, with Musk leveraging his influence to rally opposition among Republicans.
Economic Fallout: Tesla’s Stock Takes a Hit
The public spat has had significant economic consequences. Tesla’s stock price plummeted by 14% on June 5, 2025, marking its largest single-day loss in history. The decline wiped out approximately $152.4 billion in market value, reflecting investor concerns over the company’s future amid the ongoing feud.
Looking Ahead: Potential for Reconciliation
Despite the fiery rhetoric, there are signs that both parties may seek a resolution. Reports suggest that a phone call between Musk and Trump is scheduled to discuss the situation, potentially paving the way for reconciliation.
