Donald $TRUMP $ has publicly ended his alliance with Elon Musk, claiming the Tesla and SpaceX CEO lashed out over recent tax legislation that slashes electric vehicle (EV) incentives. The fallout, announced Thursday from the White House, follows days of escalating attacks by Musk on social media platform X, where he labeled the bill a “disgusting abomination.”
According to Trump, Musk was personally angered by the bill’s removal of EV tax credits and by the administration’s decision to block Musk’s favored pick for NASA chief, billionaire entrepreneur Jared Isaacman. The EV credit rollback strikes directly at one of Tesla’s most important financial support mechanisms.
> “He knew it… a long time ago,” Trump said, implying Musk was aware that the tax credits would be scrapped. “He’s upset because we took away the EV mandate, which was worth billions.”
Trump tried to shift the narrative back to policy, saying, “The bill is incredible. It’s my One, Big, Beautiful Bill.” He accused Musk of politicizing the issue, despite Musk being one of his most prominent backers during the 2024 campaign.
Musk Fires Back: “Such Ingratitude”
Musk didn’t wait long to respond. Posting simply “Whatever” at first, the Tesla CEO quickly expanded his criticisms in a flurry of posts on X:
> “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,” he wrote.
Musk went further, mocking Trump’s branding: “There has never been legislation that is both big and beautiful. Everyone knows this! Either you get a big and ugly bill or a slim and beautiful bill. Slim and beautiful is the way.”
He also refuted $TRUMP claim that he had advance notice of the EV cuts:
> “False. This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!”
In a more inflammatory turn, Musk claimed credit for Trump’s political fortunes:
> “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate. Such ingratitude.”
Market Impact and Political Fallout
The feud rattled markets. Tesla shares slid nearly 4% on Thursday, denting the stock’s May rebound and deepening year-to-date losses to over 20%. The decline erased part of the 22% rally the stock saw in May, reflecting investor anxiety over regulatory risk and political exposure.
The episode also raises questions about Musk’s political strategy, especially given that he was Trump’s largest individual donor in the 2024 election cycle—contributing over $250 million and even briefly serving as a campaign advisor.
NASA Drama Adds Fuel to the Fire
Adding to the tension, Musk biographer Walter Isaacson said that Trump's team blocked Jared Isaacman’s appointment to lead NASA—a move Musk took personally.
> “They were going after Jared Isaacman… to get at Musk,” Isaacson said, calling the maneuver a direct attempt to limit Musk’s growing influence in government space policy.
For crypto and tech investors watching from the sidelines, the feud between two of the most influential figures in business and politics highlights how quickly strategic alliances can dissolve—and how policy shifts can ripple across industries, from EVs to clean energy to space and beyond.
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