Slashing of EV credits at heart of Trump/Musk feud
The US One Big Beautiful Bill Act, which passed the House of Representatives by a narrow majority on 22 May has sparked a public feud between Musk and Trump. The bill was criticised for its expected increase in the national debt and elimination of subsidies for electric vehicles. And that affects Tesla, Musk’s company.
In response to Trump’s comments, Musk stated on his social media platform X that he could never have read the law and accused Trump of ingratitude, claiming that Trump would not have won the election without his political support.
Trump in turn expressed disappointment with Musk’s criticism of the Republican spending bill. During a meeting with German Chancellor Friedrich Merz on June 5, 2025, Trump said he had “a great relationship” with Musk but was “disappointed” by Musk’s comments.
Musk even suggested that Trump was involved in the Jeffrey Epstein affair and called for the impeachment of Donald Trump.These allegations caused considerable turmoil within the Republican Party. Many GOP lawmakers expressed outrage at Musk’s comments and sided with Trump. They accused Musk of spreading unsubstantiated claims and undermining political debate.
Financial markets reacted violently to these developments. Teslas shares fell 14.2%, resulting in a loss of $152 billion in market value. Shares of Trump Media & Technology Group also fell 8%.
Musk spent hundreds of millions of dollars on Trump’s re-election campaign through his specially created America Pac, which funded much of Trump’s campaign of door-to-door visits. Musk then took charge of the Department of Government Efficiency (DOGE), which cuts government spending. Late last month, he stepped down from DOGE, ending his time as a ‘special government employee’.
Trump suggested on Truth Social that the easiest way to save billions of dollars is to end contracts and subsidies for Musk’s companies.
Musk then announced that SpaceX would immediately start dismantling the Dragon spacecraft. This would seriously affect the US space race, as there is currently no other system available to transport astronauts to the International Space Station ISS. A few hours later, however, he seemed to have reversed his threat.
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