Elon Musk and President Trump's friendship quickly fell apart, confirming rumors of a dramatic split that the richest and most powerful people in the world had been avoiding for months.

Trump told reporters he was "very surprised" and "very disappointed" with Musk, who has since launched a campaign against the president's main policy initiative despite spending millions of dollars to help him win the election and work in his government for four months.

Musk reacted on social media by taking credit for Trump's election win in November of last year.

For the two, who were together in the Oval Office a few days prior when Trump gave Musk a ceremonial key to the White House, it was a significant change.

At one point, the president compared Musk to the plethora of former first-term government officials who later became vocal opponents.

During Musk's 130-day tenure in the government, he was sometimes indistinguishable from the president. The CEO of Tesla frequently made appearances in the Oval Office and aboard Air Force One, frequently accompanied by his young son. In an effort to help Musk, whose company had suffered due to his affiliation with the government, Trump purchased a Tesla on the White House grounds in April.

What the Bill Accounts for

The purpose of the measure is to invest in American companies and reduce taxes. But according to the Congressional Budget Office (CBO), the bill will expand the national debt by $2.4 trillion over ten years and raise the debt ceiling by $4 trillion, even though it will reduce taxes by $3.7 trillion. Two Republican senators, Ron Johnson (R-WI) and Rand Paul (R-KY), have deviated from their party's position to oppose the plan in its current form due to its impact on the nation's ongoing debt issue.

Among many other things, the law eliminates taxes on overtime compensation, tips, and Social Security income. Additionally, the measure drastically reduces funding for government healthcare programs like SNAP and Medicaid.

Additionally, the law would permanently implement the Tax Cuts and Jobs Act that Trump implemented during his first term, despite the fact that experts have shown that the wealthiest Americans benefited more from these cuts than the poorest.

Trump's new policy is likewise anticipated to provide more tax breaks to rich families than to those in need.

 

Musk urged lawmakers to "kill the bill" earlier this week. Musk was upset about the legislation's removal of an electric vehicle (EV) tax credit, Trump told reporters. Musk knew about the policy "from the beginning," according to Trump.

Musk formally left and was given a kind farewell in the Oval Office, where he promised to continue being Trump's friend and advisor.

How the Feud Intensified

When the president was questioned about the SpaceX and Tesla CEO's rejection of the plan, the conflict between Musk and Trump intensified even more. Trump asserts that Musk was well aware of his intentions for the measure but backed off when he discovered it would have a detrimental effect on his company. Musk continued by asserting that Trump's victory was solely due to his assistance. On their own social media accounts, the two business owners have persisted in taunting one another, and the situation is getting worse.

Many onlookers and insiders in Washington had been expecting the implosion for months. These doubters contended that Trump's egos could not coexist peacefully and that he could not bear to share the limelight with Musk, the richest person in the world.

Tesla’s Shares Tumble

Later this week, Tesla's stock is rising as the public dispute between CEO Elon Musk and President Trump appears to be abating. After Politico revealed later this week that Trump's aides had arranged a chat with Musk to defuse the tensions, which had reached unprecedented levels on social media, the company's stock jumped more than five percent on the Frankfurt Stock Exchange.

This year, Tesla was already facing pressure from dwindling worldwide sales and mounting customer opposition as a result of Musk's growing support for far-right political views. Investor fears have only grown as a result of the most recent political issue. The Wall Street Journal stated that short sellers of Tesla stock made significant profits as traders reacted to the dispute.

Tesla's price has recovered less than twenty-four hours after the well-known electric vehicle company's stock fell as Trump and Musk engaged in a public spat that seemed to seriously strain the relationship between the richest man in the world and the most powerful leader in the world.

Critics and Onlookers Say on the Feud

Some of the bill's features may be detrimental to Musk's enterprises, according to critics, which is why he is opposed to it. Tesla, controlled by Musk, and the larger EV market are directly impacted by the bill's proposal to eliminate consumer tax credits for electric vehicles. Musk is upset since the measure does not contain features that would benefit his companies.

What comes next in the debate is the question now. With Musk offering rhetorical and maybe financial cover for those who divide, congressional Republicans may find it more difficult to maintain support for Trump's bill.

In addition to threatening Musk's government contracts, Trump may target the administration's surviving Doge friends or revive inquiries into Musk's business activities that were started during the Biden administration.

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Democrats, meanwhile, are watching from the sidelines, unsure of how to react. Musk was once a donor to their party, but few appear eager to accept him back.