On the way to last year’s election, the relationship between Tesla/Starlink/X CEO Elon Musk and then-former President Donald Trump appeared to be great. At the time, Musk was considered one of the loudest and most influential supporters of the Republican candidate, even investing some of his own money into the campaign.
This relationship continued in 2025, as Trump appointed Elon Musk as head of the Department of Government Efficiency (DOGE). Musk, who recently stepped down from the unofficial government position, has now become a loud critic of one specific policy being pushed by this administration.
The ‘One Big Beautiful Bill Act,’ a sweeping economic and tax reform bill introduced by Trump’s administration in early 2025, aims to strengthen American businesses and military funding, all while lowering taxes for the average American taxpayer.
This legislation has faced its fair share of controversy. Most of the criticism regarding the bill comes from the fact that, in order to fund the reform, the government plans to execute significant cuts to social programs, including Medicaid and SNAP benefits, which could lead to an even harsher healthcare system for low-income Americans.
However, access to healthcare isn’t the main point of Musk’s criticism of the bill. Instead, Musk’s frustration centers on a provision that removes federal tax credits for electric vehicles, directly impacting Tesla and the broader EV industry.
Elon and Trump Throw Down
The divorce entered its nasty stage today, as Trump and Elon publicly criticized one another on social media and in live broadcasts.
Trump fired the first shot, warning that Musk’s companies—Tesla, SpaceX, and Starlink—could see their government contracts revoked if he continued his opposition to the bill. These companies have received at least $38 billion in government funding in 2024 — meaning that a sudden cut to these benefits could spell trouble for Musk’s business.
Musk wasted no time responding, calling the bill a “disgusting abomination” that was passed “in the dead of night”, claiming it would balloon the national debt while unfairly targeting clean energy industries.
The Tesla CEO is actually live-tweeting attacks on the President right now. Some of the latest posts include accusing Trump of appearing in the Epstein files, and also claiming that his international tariff policy will bring the U.S. into a recession in the second half of the year.
Despite being out of the government, Musk still holds a lot of power as a political financier. As the owner of one of the biggest social media platforms in the world, and also being responsible for multi-million dollar funding in elections — he has the ability to shape political discourse and influence voter sentiment, making him a worthy adversary to Trump.
Whether this political feud will go on remains to be seen. However, Musk’s businesses are already suffering the impact.
Tesla Shares Crashing
Shares of Tesla plummeted 14.3% today, marking the company’s worst trading session since March and its second-worst since 2020.
The massive drop wiped out approximately $150 billion in Tesla’s market valuation, as investors reacted sharply to Musk’s escalating feud with Trump.
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