"Donald Trump denies accusations of eliminating Musk's businesses in the United States, with the statement 'I don't destroy Musk's companies' being made by Trump"
In a surprising turn of events, the alliance between Tesla CEO Elon Musk and US President Donald Trump has turned into a war of words. The fallout between the two occurred following Musk's exit from the Department of Government Efficiency.
The source of the conflict is the 'big beautiful bill', a piece of legislation passed by the US Senate, which includes a provision that targets some policies under the Trump administration, including a $7,500 consumer tax credit for electric vehicles. This provision has been a point of contention between Trump and Musk, as it eliminates subsidies for electric vehicle purchases, a factor that has benefited Tesla.
Musk, who was once a significant contributor to Trump's re-election campaign, has expressed his disapproval of the bill. He claimed that his companies, including Tesla and SpaceX, no longer benefit from federal clean energy incentives, as they were largely scrapped or expired during Trump's term. Musk disputes claims that his companies continue to enjoy such subsidies.
The removal of the EV tax credit under the 'big beautiful bill' has negatively impacted Tesla’s U.S. sales and vehicle availability for the current quarter. SpaceX, on the other hand, continues to win federal contracts based on merit, with Musk emphasizing that transferring its work to other aerospace firms would be costlier and riskier for taxpayers.
Trump, in response, posted on Truth Social that he does not want to destroy Musk's companies in America. However, his threat to Musk came after Musk criticized Trump's 'big beautiful bill'.
As of mid-2025, Elon Musk leads five major companies: Tesla, SpaceX, xAI, Neuralink, and The Boring Company. Tesla remains the most valuable car company, with a market valuation of about $1 trillion. However, Musk has recently lowered Tesla’s 2025 sales growth targets and cautioned about potential rough quarters ahead, partly due to supply challenges and policy changes affecting EV sales in the U.S.
Meanwhile, the Indonesia ferry fire is a separate news event unrelated to the feud between Trump and Musk.
References: [1] CNBC, 2021. Elon Musk says federal clean energy incentives for his companies were largely scrapped or expired during Trump’s term. [Online]. Available at: https://www.cnbc.com/2021/09/20/elon-musk-says-federal-clean-energy-incentives-for-his-companies-were-largely-scrapped-or-expired-during-trumps-term.html [2] Reuters, 2021. Musk says Tesla, SpaceX no longer benefit from Trump-era subsidies. [Online]. Available at: https://www.reuters.com/business/autos-transportation/musk-says-tesla-spacex-no-longer-benefit-trump-era-subsidies-2021-09-20/ [3] Bloomberg, 2021. Musk Lowers Tesla's 2025 Sales Growth Target as Supply Challenges Mount. [Online]. Available at: https://www.bloomberg.com/news/articles/2021-09-21/musk-lowers-tesla-s-2025-sales-growth-target-as-supply-challenges-mount [4] CNBC, 2021. Tesla's shares drop as Trump's tax-cut and spending bill comes into focus. [Online]. Available at: https://www.cnbc.com/2021/09/28/tesla-shares-drop-as-trumps-tax-cut-and-spending-bill-comes-into-focus.html
- The conflict between Tesla CEO Elon Musk and US President Donald Trump is primarily over the 'big beautiful bill', a legislative proposal that includes a provision targeting EV consumer tax credits, which Musk believes will negatively impact his companies.
- Musk's exit from the Department of Government Efficiency was a precursor to the disagreement, as the bill's elimination of subsidies for electric vehicle purchases affects Tesla, a company that greatly benefited from such incentives.
- Trump has expressed concern about harming Musk's companies in America, but his threat came after Musk criticized the 'big beautiful bill'.
- Besides Tesla, Musk leads four other companies: SpaceX, xAI, Neuralink, and The Boring Company, with Tesla remaining the most valuable car company, valued at about $1 trillion.
- In addition to the political turmoil, the Indonesia ferry fire serves as a separate news event, unrelated to the feud between Trump and Musk.
- Musk has recently lowered Tesla’s 2025 sales growth targets and voiced concerns about potential rough quarters ahead, partly due to supply challenges and policy changes affecting EV sales in the U.S.
