Elon Musk’s public feud with Donald Trump is marking a dramatic shift in political-business alliances. Discover the impact this feud will have on Tesla, EV policy, and the future of EVs in America.
In a dramatic twist, Elon Musk and Donald Trump, once perceived as occasional allies, have entered a public and politically charged feud. What began as mutual respect between two of the most powerful men in America has devolved into open hostility, criticism, political threats and potential consequences for the EV industry.
At the epicenter of this feud is the proposed “One Big Beautiful Bill Act,” a sweeping legislative initiative backed by Trump to remove EV tax credits and expand fossil fuel subsidies. Musk in response to this publicly denounced the bill, triggering a volatile chain of events with profound implications for Tesla, the U.S. EV market, and clean energy policy.
The Feud
On June 5, 2025, Elon Musk took to his social media platform X, to slam Trump’s legislative agenda, calling the One Big Beautiful Bill a “disgusting abomination” and urging lawmakers to reject it.
The One Big Beautiful Bill (OBBB) is a budget reconciliation bill currently making its way through the 119th United States Congress. It is primarily focused on tax cuts, spending reductions, and increased funding for certain sectors.
One sector this bill affects is the EV industry by eliminating its tax credits and adding new fees for all EV owners. Currently, the U.S government offers tax credits to encourage people to purchase EV’s making them cheaper and more attractive. However, the implementation of the OBBB will take away these tax credits by the end of 2025.
The bill also proposes a new annual government fee, regardless of when you bought your car. If this bill becomes law, it would make EVs more expensive to buy and own, thereby affecting investments in the EV industry, sales and productivity levels of EV makers and slowing down the transition rate to EVs in the U.S.
“I’m very disappointed with Elon. I’ve helped him a lot. He knew the inner workings of the bill better than anybody sitting here,” said Trump during his interview with Florida’s voice, following Musk’s posts on X. “He had no problem with it. All of a sudden he had a problem & he only developed the problem when he found out we’re going to cut EV mandate.”
In response to this, Musk claimed he never once saw the bill and criticized the bill for gutting federal EV subsidies and accelerating national debt, stating it would put the U.S. in long-term debt slavery. He took to his social media platform on X saying, “Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair), but ditch the MOUNTAIN OF DISGUSTING PORK in the bill”
In retaliation, Trump posted on his X account, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and contracts.” The exchange escalated quickly, with Musk hinting at corruption within Trump’s inner circle and even calling for impeachment over undisclosed documents relating to Epstein files.
Impact on Tesla and The EV Market
The feud has already had tangible financial consequences for Tesla. Within hours Tesla’s stock experienced a significant drop, experiencing a 14% drop and wiping out $152.4 billion of its market value. This decline reflects investor uncertainty towards Tesla amidst potential loss of federal support and the impact political instability could have on the EV market.
Removal of EV tax credits will introduce uncertainty amongst consumers, manufacturers and investors alike, as the tax credits previously played a crucial role in promoting EV adoption. The implication of this wouldn’t be limited to Tesla alone, but the EV market when people seek cheaper alternatives to EV’s.
Should the Government withdraw its support for tax credits given to manufacturers and consumers, grants for EV charging infrastructure, and incentives for battery and rare earth material production, the EV industry may have to shift its focus to investments from private individuals and the international market.
