Trump and Musk Clash Over Tax Bill, Signaling a Cooling Relationship

President Donald Trump and billionaire Elon Musk engaged in a public exchange of criticism on Thursday, centered around the Trump administration's significant tax-cut and spending legislation. This occurred shortly after Musk's departure from the administration.

The tax bill, a key component of Trump's agenda, encompasses various economic initiatives. These include the elimination of tax credits for electric vehicle consumers, increased funding for border security, and reductions in both corporate and individual tax rates. Musk has been vocal in his disapproval of the bill.

Musk, on social media, described the bill using strong language, criticizing its perceived flaws. He expressed skepticism about the possibility of legislation being both large-scale and beneficial, suggesting a trade-off between size and quality. Trump, in turn, attributed Musk's discontent to the bill's potential impact on electric vehicle tax credits, which could affect Musk's business interests as the CEO of Tesla.

Trump expressed disappointment in Musk, highlighting their past relationship and the support he felt he had provided. Musk, in response, made statements about his role in the election. The back-and-forth continued with Trump criticizing Musk, and Musk refuting those claims.

Following the public disagreement, Tesla's stock price experienced a significant decline. Musk had previously been a supporter of Trump, contributing financially to his campaign. After Trump's election victory, Musk joined a government department focused on efficiency and debt reduction. His work led to significant cuts and layoffs, resulting in protests. Musk announced his departure from the administration the previous week. He also initiated a survey on social media regarding the potential for a new political party.