Musk Breaks with Trump Over Massive Spending Bill, Warns of Economic Blowback

Tensions between Elon Musk and Donald Trump are growing after the Tesla CEO criticized the president’s recently passed tax bill. In a CBS interview teaser, Musk slammed the legislation as fiscally irresponsible, saying it adds to the national deficit and undermines budget-cutting initiatives he once spearheaded.
The One Big Beautiful Bill Act, narrowly passed by the House, fulfills several of Trump’s campaign pledges. It extends tax breaks for individuals and businesses while gutting Medicaid, food stamps, and clean energy subsidies. Musk, who had led a government cost-efficiency team earlier this year, now says the bill reverses progress.
The fallout may have financial consequences. Tesla stock has plunged 25% since Musk joined Trump’s inner circle, and the elimination of EV incentives adds more pressure. Once a key donor to Trump’s campaign, Musk’s public criticism signals a political and business divide that could reshape the future of clean tech policy.