Tensions between US President Donald Trump and tech billionaire Elon Musk have erupted, marking the end of a powerful alliance that helped shape the 2024 election. Their once-strong partnership had been crucial to the Republican Party’s victory. Now, their fallout is making headlines — and could have major consequences for both.
Disagreement Over Trump’s Tax Bill
The main source of conflict is Trump’s ambitious tax proposal, known as the “One Big Beautiful Bill.” The White House claims the bill will fuel “unprecedented economic growth.” But the Congressional Budget Office warns that it could increase the U.S. fiscal deficit by a massive $2.5 trillion over the next 10 years.
Elon Musk has made it clear he opposes the bill. As the head of the Department of Government Efficiency (DOGE), he had promised to reduce government spending and cut the deficit. But this bill, in Musk’s view, does the opposite.
It also eliminates tax credits for electric vehicles — a move that directly affects Tesla. Musk’s frustration over the bill, combined with its threat to his goals at DOGE, led to a dramatic public split with Trump.
“It Was Always Just a Matter of Time”
Observers say the breakup was inevitable. Despite their past cooperation, Musk’s fiscal views clashed with Trump’s new agenda. Their falling out could now hurt Trump’s chances of pushing his tax plan through the Senate.
Musk’s criticism has also emboldened other Republicans. Florida Governor Ron DeSantis, for instance, has joined in criticizing the bill. With opposition growing inside the GOP, the road to passing Trump’s flagship economic policy may be much tougher.
Musk’s Political Support Was Crucial
Musk wasn’t just a government appointee. He was also a major donor. Reports say he contributed around $250 million to Trump’s 2024 campaign. He was expected to give more for the 2026 midterm elections — a critical test for Republicans hoping to keep control of both chambers of Congress.
Beyond money, Musk’s control of X (formerly Twitter) helped boost Trump’s political messaging. The platform amplified Republican voices to millions globally. Without Musk’s backing, Trump and the GOP could lose both financial and communication advantages.
Musk’s Companies Could Face Setbacks
Musk resigned from the Trump administration in May to focus on Tesla and SpaceX. But that decision — along with his public attacks on Trump — may come at a cost. Trump has now threatened to cancel federal contracts and subsidies tied to Musk’s businesses.
These threats sent Tesla’s stock price plunging, as investors grew wary of a possible break between Musk and Washington. Musk’s companies, especially SpaceX, have benefited from billions in government funds over the years for developing space and satellite technology.
Political Backlash Mounts
Musk’s criticism of Trump hasn’t just sparked financial worries. It’s also drawing political heat. While leading DOGE, Musk and his companies were already targets of protests and even acts of vandalism. That pressure may grow stronger now, with some conservatives also turning against him.
Experts believe Musk’s choice to break ranks with Trump will have lasting impacts — not just on policy, but on business and politics alike.