- Elon Musk slammed Trump’s tax bill for axing EV credits and bloating the deficit.
- Tesla shares plunged 15% Thursday, deepening a 25% decline this year.
- Musk resigned from Trump’s DOGE initiative amid growing political fallout.
Things are heating up between Elon Musk and President Trump, and it’s not just on social media. On Thursday, Musk slammed Trump’s controversial “One Big Beautiful Bill Act,” a sweeping tax and spending package that recently cleared the House by just one vote. Musk called the bill a “disgusting abomination,” pointing to its removal of EV tax credits and its potential to bloat the national deficit by trillions. He didn’t stop there—accusing lawmakers of pushing the bill through in the dead of night and hinting that Trump is personally retaliating against him.
Trump, on the other hand, didn’t hold back either. He took to Truth Social, calling Musk “very disappointing” and suggesting their once-cozy relationship might be broken for good. He even hinted at cutting government contracts tied to Musk’s companies. Musk quickly responded, claiming Trump wouldn’t have even won the election without his support—further fueling the drama.
Tesla Takes a Hit as Tensions Escalate
The ongoing feud appears to be hitting Tesla’s bottom line. The automaker’s stock plummeted 15% on Thursday alone, continuing a troubling year-to-date slide of over 25%. Tesla shares, which reached a high of $488.54 in December, are now trading around $280.70. Investors are clearly rattled—not only by Musk’s public political battles but also by mounting concerns over the loss of crucial EV incentives.
Musk’s Exit from DOGE
Meanwhile, Musk’s departure from the Department of Government Efficiency (DOGE) adds another twist to the saga. Appointed by Trump to overhaul the federal government’s tech operations, Musk left the role last month after what he described as an “intense” first quarter. The department had been created on Trump’s first day in office to boost productivity across agencies, but its future seems unclear now that Musk has walked away.
Fallout and What’s Next
The once high-profile alliance between Musk and Trump seems to be unraveling in real time. With Tesla under pressure and political tensions boiling over, the implications could stretch far beyond EV tax credits. As both camps trade jabs, investors, policymakers, and everyday voters are left watching what feels more like a reality TV feud than a standard political disagreement.
