Musk and Trump Fall Out Over US Spending and EV Subsidies
- Jun 6
- 2 min read
Updated: Jun 7
Who?
US President Donald Trump and billionaire entrepreneur Elon Musk, once political allies, are now publicly at odds following a series of critical remarks about Trump’s domestic policy bill. Musk, the CEO of Tesla and SpaceX, recently left his role as head of the Department of Government Efficiency (DOGE), a post he held for 129 days. He had been one of Trump’s most prominent donors in the 2024 election, contributing around $300m and serving as an adviser tasked with reducing federal spending.
What?
The feud began after Musk publicly criticised a Republican-backed tax and spending bill that passed the House of Representatives and is under consideration in the Senate. Musk described the bill as a “disgusting abomination” and claimed it would add significantly to the US national debt, which currently stands at $36.2trn. The Congressional Budget Office estimates the bill would increase the deficit by $2.4trn over ten years. Musk has encouraged his followers to contact lawmakers in opposition to the bill.
Where?
The dispute unfolded across social media and during a press conference at the White House. Trump made critical comments about Musk during a joint appearance with German Chancellor Friedrich Merz in the Oval Office. Musk responded on his social media platform, X (formerly Twitter), where he has over 220 million followers. The exchanges also featured on Trump’s Truth Social platform.
When?
The conflict escalated during the first week of June 2025, days after Musk’s departure from DOGE. Their previously close relationship had been marked by public praise as recently as 30 May. The House passed the controversial bill in May, and Senate deliberations are ongoing.
Why?
Trump has accused Musk of opposing the bill due to its proposed removal of electric vehicle tax credits, which could affect Tesla’s business. Musk denies this, stating his opposition is based on deficit concerns and what he describes as excessive “pork” or wasteful spending in the legislation. In response to Musk’s criticism, Trump threatened to cancel federal contracts and subsidies to Musk’s companies. Tesla shares fell 14% on the day the feud became public, contributing to a broader decline in the company’s stock value.
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