June 6, 2025
This Thursday, President Trump began publicly feuding with billionaire donor and political ally Elon Musk. Musk had recently stepped down from his post heading the newly formed Department of Government Efficiency (DOGE) where he made headlines slashing the federal bureaucracy but reportedly fell short of significantly reducing the budget deficit.
The dispute arose from the outspoken Tesla CEO’s criticism of the Trump administration’s proposed budget reconciliation bill, dubbed the “One Big Beautiful Bill Act.” The bill, among its many provisions, extends the tax cuts first enacted from the Tax Cuts and Jobs Act of 2017, slashes welfare spending, and reduces Biden-era green energy tax credits. The nonpartisan Congressional Budget Office (CBO) has estimated that the bill would likely add trillions to the National Debt.
The bill reportedly drew the ire of the eccentric tech billionaire primarily due to its excessive pork barrel provisions and allegedly due its reduction in electric vehicle tax incentives. If passed, the curtailment of such tax incentives could hurt the automotive sales of Elon Musk’s electric vehicle company, Tesla.
Elon Musk, now returned to his Tesla post, lambasted Republicans for supporting the bill, which he referred to as an “abomination.”
During a press conference with newly elected German Chancellor Friedrich Merz, Trump tore into Musk, stating that he could have won without the SpaceX head’s support and hinting at various ways the administration could retaliate against Musk’s companies. In addition to holding rallies for then-candidate Trump in Pennsylvania, Musk donated nearly $300 million to the campaign, representing the largest amount donated to a candidate of either major party that cycle and possibly the largest political contribution for a single campaign in history.
The clash between the billionaires signaled the unexpected but unsurprising end to Trump’s short-lived alliance with Musk. However, it was nevertheless indicative of longstanding unaddressed tension between the two powerful figures. Even while campaigning together, the two men represented vastly different interests and communities. Trump and his MAGA movement was an embodiment of rural and, perhaps to a lesser extent, manufacturing America. His base of support mostly spanned the South and the Great Planes and somewhat revolved around postliberalism and opposition to foreign markets and exposure. Musk, although not technically a politician, represented the interests of the Silicon Valley tech elite; conservative in economic policy but aggressively pro-immigration, especially in the context of skilled workers and international students. Aside from their shared hatred of progressive ideals, the two men shared very little in common, and even on the campaign trail, it was evident from his subliminal messaging that Trump was less comfortable with the billionaire following him everywhere.
An impending doom was bound to erupt the relationship into flames and this week’s exchanges did not disappoint.