U.S. President Donald Trump and billionaire Elon Musk traded barbs on Thursday over the administration’s sweeping tax-cut and spending bill, just a week after Musk exited his advisory role.
What began as a critique of the government’s $1.7 trillion spending bill quickly escalated into a full-blown public spat. Musk publicly denounced the bill, citing concerns over its impact on the already staggering $36.2 trillion national debt. Trump initially remained silent but later used a White House press briefing to express dismay at Musk’s comments.
Tensions rose further after Trump threatened to terminate federal contracts and subsidies for Musk’s companies—particularly Tesla and SpaceX. In response, Tesla’s stock plummeted 14.3% in a single day, marking its largest one-day drop in history and wiping out nearly $150 billion in market value.
The shock rippled across markets, dragging down the S&P 500 and triggering volatility in the crypto sector. The fallout is still unfolding.
