The once strong alliance between President Donald Trump and Tesla CEO Elon Musk came apart abruptly on Thursday amid a fierce disagreement over Trump’s proposed tax legislation currently awaiting Senate approval.
In a sharp rebuke, Trump referred to Musk as “crazy” and hinted at severing federal contracts with Musk’s various companies, which include Tesla, the aerospace giant SpaceX, and the AI venture xAI. Following Trump’s remarks, Tesla’s stock suffered a significant drop, and Musk reacted by announcing that SpaceX would start dismantling its Dragon spacecraft program without delay due to what he deemed as threatening behavior from the president.
According to Trump, Musk—who had previously been a top advisor—opposes the sweeping tax package primarily because it removes tax credits for electric vehicles and because Trump decided not to nominate Musk’s chosen candidate, Jared Isaacman, to lead NASA. “I’m very disappointed in Elon. I’ve helped Elon a lot,” Trump told reporters at the White House. Just a week earlier, he had praised Musk’s involvement in the DOGE project, aimed at slashing government spending and cutting down on the federal workforce.
Reflecting on their past, Trump added, “Elon and I had a great relationship. I don’t know if we will anymore.”
Musk quickly responded through a terse post on his platform, X, simply stating, “Whatever.” He has publicly opposed the bill on the grounds that it would drive up federal deficits. In a more detailed critique, Musk posted, “Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill. In the entire history of civilization, there has never been legislation that both big and beautiful.”
Further escalating tensions, Musk tweeted, “Without me, Trump would have lost the election,” asserting that his contributions were pivotal to Trump’s political fortunes. He went on to say, “Dems would control the House and the Republicans would be 51-49 in the Senate,” referring to the 2024 elections. Musk had poured over $250 million into Trump’s re-election campaign, making him the largest donor to that effort. “Such ingratitude,” Musk concluded in a follow-up post.
The billionaire CEO also launched a poll on X, asking, “Is it time to create a new political party in America that actually represents the 80% in the middle?”—a clear sign of his disillusionment with current political alignments.
The spat had immediate financial implications as Tesla’s share value dropped more than 8% amid the very public fallout between Musk and Trump. The conflict comes after several days of Musk lambasting the bill, which Trump has described as his “One, Big, Beautiful Bill,” on the grounds that it would inflate federal deficits. Musk had previously labeled the legislation a “disgusting abomination.”
Just days before the verbal feud, Trump had hosted Musk at an Oval Office event and commended him for his role in federal fiscal initiatives. However, things took a turn when the president rescinded his nomination of Jared Isaacman, a tech billionaire favored by Musk, to head NASA. “You know, I’ve always liked Elon,” Trump said on Thursday. “I’d rather have him criticize me than the bill, because the bill is incredible.”
Trump emphasized that Musk’s objections seemed tied to financial incentives for electric vehicles being cut from the bill. “Elon is upset because we took the EV mandate, and you know, which was a lot of money for electric vehicles,” he explained. “And you know, they’re having a hard time, the electric vehicles, and they want us to pay billions of dollars in subsidy.”
According to Trump, Musk was not only aware of the proposed elimination of EV tax credits, but had accepted it earlier in the process. “Elon knew this from the beginning,” Trump stated. “He knew it … a long time ago.”
Trump also criticized Musk for what he sees as a sudden and opportunistic shift in position. “I’m very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people. He knew everything about it. He had no problem with it,” Trump said.
“But all of a sudden he had a problem, and he only developed the problem when he found out that we’re going to have to cut the EV mandate, because that’s billions and billions of dollars, and it really is unfair,” Trump added.
Regarding the withdrawn NASA nomination, Trump explained, “I’m sure [Musk] respected him, but to run NASA … I didn’t think it was appropriate.” He also pointed out Isaacman’s political leanings as a factor. “You happen to be a Democrat, like totally Democrat,” Trump remarked. “And I say, you know, look, we won. We get certain privileges. And one of the privileges we don’t have to appoint a Democrat. NASA is very important.”
Trump hinted that Musk’s change in tone followed a common pattern he had observed with other former allies. “People leave my administration, and they love us. And then at some point they miss it so badly, and some of them embrace it, and some of them actually become hostile. I don’t know what it is,” Trump noted.
“It’s sort of Trump derangement syndrome, I guess they call it,” he added. “But we have it with others too. They leave, and they wake up in the morning, and the glamor is gone.”
In sum, the dramatic unraveling of the Trump-Musk relationship underscores the growing divide between pro-business conservatives and the evolving priorities of Trump’s economic agenda. What began as a fruitful partnership rooted in mutual ambitions for innovation and deregulation has now devolved into a public clash over subsidies, spending, and political loyalty—with potentially lasting consequences for both men.