Early June 2025 began a feud between President Donald Trump of the United States of America, and the richest man in the world Elon Musk. The feud was sparked by Trump’s “One Big Beautiful Bill”, a sweeping tax-and-spending package designed to:
Extend Trump-era tax cuts;
Increase defense and border funding;
Eliminate the $7,500 federal tax credit for electric vehicles, which directly impacts Tesla.
Though Musk previously opposed such credits, he shifted his stance when Tesla’s margins weakened. He openly criticized the bill, denouncing it as a “disgusting abomination” and specifically condemned the rollback of EV and solar incentives—while noting that oil and gas subsidies remained untouched.
Trump struck back, claiming Musk was aware of the EV credit cuts all along and accusing him of ingratitude—especially after Trump had supported Tesla’s early growth.
The Feud Escalates
1. Musk’s Bold Barbs on X
On the EV credits & pork-laden bill:
“Keep the EV/solar incentive cuts… but ditch the MOUNTAIN of DISGUSTING PORK in the bill.”
He then claimed Trump owed his re-election to Musk’s contributions, accusing him of “ingratitude,” and urged impeachment.
Musk also made explosive allegations, claiming Trump appeared in the Epstein files, though he later deleted those tweets.
2. Trump’s Fierce Response on Truth Social
Threatening Musk’s subsidies:
“The easiest way to save… Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”
He labeled Musk as “very disappointed” and “CRAZY,” blaming uncovered entitlement to EV credits.
He also warned Musk against supporting Democrats:
“He’ll have to pay very serious consequences if he does that.”
Trump publicly declared the relationship over, asserting he had no intention of reconciling.
Business & Market Fallout
The public sparring led to a sharp market reaction:
Tesla stock plunged ~14% in one day, wiping out over $150 billion in market value.
Analysts estimated that phasing out EV tax credits could reduce Tesla’s 2025 deliveries by ~15%, though they don’t foresee long-term derailment of the company’s autonomy and energy ambitions.
California’s EV targets were mentioned as being at risk if federal incentives vanish.
Where Things Stand Now
Policy battleground
The core disagreement remains: EV tax credit removal hits Tesla at its heart. Trump insists it’s necessary to rein in spending, while Musk calls it unfair, given that oil and gas subsidies continue.
Political maneuvering
Trump threatens to strip Musk’s companies of federal support if he financially backs Democrats; Musk seems to be distancing himself from the public feud by deleting incendiary posts.
Tentative détente?
A potential peace gesture arose after investor Bill Ackman suggested the two make up. Tesla’s stock rebounded ~6% following signs of de-escalation, though both sides maintain skepticism.
Key Social Media Exchanges
Elon Musk on X
Critique on the spending bill:
“Either you get a big and ugly bill or a slim and beautiful bill. Slim and beautiful is the way.”
On historical support and ingratitude:
“Trump would have lost the election if not for me…”
(He has since deleted posts about the Epstein files and impeachment.)
Trump on Truth Social
Threatening subsidies:
“The easiest way to save… is to terminate Elon’s Governmental Subsidies and Contracts.”
Personal jabs:
“Elon… went CRAZY!”
What to Watch
Senate vote on the “Big Beautiful Bill” – particularly amendments on EV credit retention.
Musk’s next political moves – whether he sticks with Republicans or pivots away.
Federal contracts’ fate – if Trump follows through with punitive measures.
Tesla’s fundamentals – especially demand momentum amid policy turbulence and stock volatility.
This saga highlights the tension between private enterprise and public policy—and how fragile personal alliances can be when financial incentives and political power collide.
