In a rare and pointed rebuke, billionaire entrepreneur Elon Musk has publicly criticized U.S. President Donald Trump’s$TRUMP newly proposed tax bill, warning that it threatens the government’s fiscal stability and undermines prior cost-cutting initiatives.

Speaking during a CBS interview on Tuesday, the Tesla (NASDAQ: TSLA) CEO said the bill "increases the budget deficit and reverses critical institutional reforms." Musk, who previously played an advisory role in the federal government’s Efficiency Team,$TRUMP expressed concern that the new legislation rolls back hard-won progress.

> “The bill can be big or beautiful, but I don’t think it can be both,” Musk said, signaling a stark shift in his stance toward the administration.

The proposed legislation includes provisions to extend 2017 tax cuts, expand border security funding, and impose new Medicaid work requirements. However, it also reduces clean energy tax incentives—an area close to Musk’s mission at Tesla and SpaceX.

Musk also revealed he will be scaling back his involvement in politics, citing dissatisfaction with what he describes as “undisciplined expansionary spending.” He warned that continued increases in government spending could further widen the U.S. budget deficit.

While Musk has historically maintained a cooperative relationship with Trump, this marks the first public fallout between the two, underscoring deeper tensions over fiscal priorities. As markets digest the implications of the proposed bill, Musk’s comments may signal broader concerns within the business community about long-term economic stability and sustainability.$ETH