Tesla shares dropped more than 8% on Thursday after US President Donald Trump slammed the electric vehicle maker’s top boss, Elon Musk over the new US tax bill. Trump fired back, alleging Musk was upset because the bill takes away tax benefits for electric vehicle purchases, while investors feared their souring relationship could hurt Musk’s sprawling business empire.
The world’s richest man, a key figure in the Department of Government Efficiency’s (DOGE) cost-cutting initiative for several months, has blasted the bill, not long after he said he would spend less time in the White House and more time with his companies. On his social media platform X, Musk has called on Congress members to kill the legislation, calling it a “disgusting abomination.”
Trump lashed out on Thursday against Elon Musk, saying he was “disappointed” by the billionaire’s public opposition to the sweeping tax-cut and spending bill that is at the heart of Trump’s agenda.
“Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump said in the Oval Office. “He said the most beautiful things about me, and he hasn’t said bad about me personally, but I’m sure that’ll be next. But I’m, I’m very disappointed in Elon. I’ve helped Elon a lot.”
Trump also asserted that Musk’s days of blistering attacks on the bill were motivated by the proposed elimination of consumer tax credits for electric vehicles. Musk, the CEO of electric vehicle maker Tesla, has said he opposes the bill because it will increase federal deficits.
Musk hit back minutes later on his X social network, saying the 78-year-old president’s claims he had advance sight of the bill were “false.”
“Whatever,” he added above a video of Trump saying Musk was upset about the loss of subsidies for electric vehicles.
The latest clash comes less than a week since Trump held a grand Oval Office farewell for Musk as he wrapped up his time leading the cost-cutting Department of Government Efficiency (DOGE).
Musk stunned reporters at the time by turning up with a black eye that he said was caused by his son.
“You saw a man who was very happy when he stood behind the Oval desk, and even with the black eye. I said, you want a little makeup? We’ll get you a little makeup,” Trump said.
Trump said he could understand why Musk was upset with some steps he had taken, including withdrawing a nominee to lead the NASA space agency whom the tech tycoon had backed.
The US president’s “big, beautiful bill” on tax and spending — the centerpiece of his domestic agenda — could define his second term and make or break Republican prospects in the 2026 midterm elections.
Musk however called it a “disgusting abomination” on Tuesday. A day later, the magnate called for Republicans to “kill the bill,” and for an alternative plan that “doesn’t massively grow the deficit.”
