The uneasy peace between Donald Trump and Elon Musk has crumbled—again.
Just weeks after briefly aligning over policy, the two high-profile power players are back at odds, this time over Trump’s sweeping “Big, Beautiful Bill.” After the Senate advanced the bill over the weekend, Musk erupted on social media, vowing to fund primary challengers against Republican lawmakers who supported the legislation. He slammed the bill’s massive price tag and accused Congress of betraying promises to cut government spending.
By Monday night, Trump hit back hard.
Speaking Tuesday at the White House, Trump warned that Musk’s opposition to the bill could cost him far more than tax breaks and federal funding. Referring to DOGE—the Department of Government Efficiency, which Musk once led—Trump said, “DOGE is the monster that might have to go back and eat Elon.”
“He’s upset he’s losing his EV mandate,” Trump said. “But Elon could lose a lot more than that. We’ll see.”
Trump also floated the possibility of investigating Musk’s companies, adding, “Maybe DOGE needs to take a very close look at all those contracts. Big money to be saved!”
Musk’s Fallout and Financial Blow
Musk, who has largely kept his criticism policy-focused this time around, responded online with restraint. Quoting a video clip of Trump’s DOGE remark, Musk posted: “So tempting to escalate this. So, so tempting. But I will refrain for now.”
Still, the clash is having real consequences. Tesla’s stock dropped 7% Tuesday following a 2% dip Monday, even as broader markets soared to record highs. Analysts point to investor anxiety over the Musk-Trump feud, especially Trump’s threat to revisit federal subsidies and contracts with SpaceX and Tesla.
“This BFF situation has now turned into a soap opera,” said Dan Ives of Wedbush Securities. “It’s an overhang on Tesla stock. Investors want Elon to focus on Tesla, not politics.”
Tesla, already under pressure from slowing EV demand and tightening margins, could face steep financial losses if Trump follows through. The $7,500 EV tax credit, worth over $1 billion annually to Tesla, is now at risk. And regulatory credits—worth an estimated $8 billion to Tesla over six years—may vanish if Trump rolls back emissions rules.
A Populist Pivot?
Musk’s renewed political aggression began Monday when he unleashed a wave of posts slamming the Senate bill. He accused lawmakers of hypocrisy and shared a graphic labeling them “LIARS” for voting to increase the national debt.
“Anyone who ran on cutting spending but voted for this debt bomb will see their face on this poster next year,” Musk warned.
He also floated launching a new political party—the “America Party”—and said he’d bankroll opposition candidates in GOP primaries, starting with backing Rep. Thomas Massie of Kentucky, one of the few Republicans opposing the bill.
“If this insane spending bill passes, the America Party will be formed the next day,” Musk declared.
Trump Hits Back
Trump responded with threats aimed squarely at Musk’s business empire.
“Elon may have gotten more subsidy money than anyone in history. Without it, he’d probably have to close shop and head back to South Africa,” Trump wrote on Truth Social. “No more rockets. No more electric cars. Huge savings for America.”
He added: “We might have to put DOGE on Elon.”
The president also hinted—possibly in jest—at reconsidering Musk’s citizenship: “Would we deport him? I don’t know. We’ll have to take a look.”
While Musk has denied that his opposition to the bill is about EV credits, Trump insists otherwise. “He’s mad the EV gravy train is ending,” Trump said.
Musk, meanwhile, insisted his concern was about ballooning government debt. “All I’m asking is that we don’t bankrupt America,” he posted Monday.
Political Chess
Whether Musk’s threats will derail the bill remains unclear. Trump is applying enormous pressure on Republican holdouts, while Musk has the money to fund insurgent campaigns. But his track record is mixed—earlier this year, he failed to sway a key Wisconsin supreme court race, despite heavy investment.
Musk’s America PAC spent $275 million supporting Trump and GOP candidates in 2024. But in May, he announced plans to scale back political spending. Whether he reengages remains to be seen.
For now, the drama continues. One thing is certain: the Trump-Musk alliance has once again erupted into a very public—and very costly—civil war.
