The relationship between former President Donald Trump and Tesla CEO Elon Musk has taken a serious turn after a major disagreement over a new tax bill currently being discussed in the U.S. Senate. The bill includes plans to remove tax credits for electric vehicles (EVs), something that would directly affect Tesla and its customers. It also reportedly involved the rejection of one of Elon Musk’s nominees for a key position at NASA.
Trump accused Musk of opposing the tax bill only because it would hurt his business and personal interests. In return, Musk strongly criticized Trump on social media. He claimed that his support played a big role in Trump’s success during the 2024 presidential race, saying, “Without me, Trump would have lost the election.” Musk also revealed that he had donated $250 million to Trump’s campaign.
Trump reacted by calling Musk “crazy” and even threatened to cut off government contracts with Musk’s companies, including Tesla, SpaceX, and xAI. This public clash between the two powerful figures led to a sharp drop in Tesla’s stock price, which fell by more than 8% after the news broke.
Musk didn’t hold back in his criticism of the tax bill either. He called it “a disgusting abomination” and said it would only increase the country’s financial problems by adding to the national deficit. In a bold move, Musk also launched an online poll asking people if they would support the creation of a new centrist political party—one that would stand in between the current Democratic and Republican parties.
This growing conflict marks a dramatic shift in the relationship between Trump and Musk. Once political allies during the 2024 campaign, they are now caught in a very public and personal feud that mixes politics, business, and power. The situation is also raising questions about how tech leaders and politicians work together—and what happens when that partnership breaks down.
