Musk Slams Trump’s Debt Bill in Escalating Online Tirade
Elon Musk launched a direct and unfiltered attack on former President Donald Trump on Thursday, igniting a public feud that quickly spiraled across social media and into official White House responses.
The Tesla CEO reposted a 2013 tweet by Trump expressing “embarrassment” over Republican efforts to extend the debt ceiling. Musk added the caption “wise words,” apparently mocking Trump’s current stance on his so-called One Big Beautiful Bill Act, which proposes scrapping the debt ceiling entirely. The bill, which would raise the debt ceiling before its projected August deadline, has been a point of contention for days.
By noon, Trump responded during a press conference in the Oval Office, implying Musk’s criticism stems from frustration over the bill’s removal of the electric vehicle (EV) tax credit. Trump said Musk might no longer be a friend and accused him of knowing the bill’s “inner workings.”
Verbal Blows and Claims of Betrayal
Musk quickly fired back, calling the claim “false,” asserting he never saw the bill and claiming it was passed “in the dead of night.” The billionaire added that “without me,” Trump would have lost the election, pointing to his $250 million campaign donation. “Such ingratitude,” Musk tweeted.
By late afternoon, Trump escalated the spat, suggesting Musk’s federal contracts and subsidies should be terminated to save “billions and billions of dollars.” He claimed Musk had been “wearing thin” around the White House and that he “asked him to leave,” prompting Musk to “go CRAZY.”
Musk called Trump’s version of events “an obvious lie,” and continued tweeting throughout the day. At one point, he accused Trump of being implicated in the unreleased FBI “Epstein files”—without offering evidence.
At 4:09 P.M., Musk said he would decommission SpaceX’s Dragon spacecraft, a vital vehicle used by NASA to ferry astronauts to the International Space Station. Just minutes later, he endorsed a social media call for Trump’s impeachment.
Later, Musk warned that Trump’s tariffs could push the U.S. into a recession in the second half of the year.
Signs of a Truce?
By midnight, signs of de-escalation began to emerge. After a follower urged him not to decommission Dragon, Musk reversed course: “Good advice. Ok, we won’t decommission Dragon.”
At 1 A.M. Friday, hedge fund billionaire Bill Ackman tweeted that Trump and Musk should reconcile “for the benefit of our great country.” Musk replied, “You’re not wrong.”
But even after the olive branch, Musk continued criticizing Trump’s allies and his signature policy bill.
Tesla shares, which had plunged 14% during the spat, recovered slightly Friday morning, up 4.4% in premarket trading.
However, in a Friday morning interview with ABC News, Trump dismissed reconciliation efforts: “Not particularly [interested],” he said, claiming Musk had “lost his mind.”
Surprising Fact
Despite Trump’s claims, Musk has long opposed the EV tax credit, calling for the elimination of all government incentives. “I think we should get rid of all credits,” Musk said in December.
Big Number
$2.4 trillion — That’s the estimated increase to the national debt over the next decade if Trump’s bill passes, according to the Congressional Budget Office. The bill is projected to cost $4.2 trillion and save $1.8 trillion through spending cuts.
Crucial Quote
I’m very disappointed in Elon. I’ve helped Elon a lot.” — Trump, during a Thursday meeting with German Chancellor Friedrich Merz.
Background
Musk stepped down from his White House role last week and began criticizing Trump’s bill immediately after. He called the legislation a “massive, outrageous, pork-filled . . . disgusting abomination.”
In the days that followed, Musk issued calls for voters to oust Republicans who supported the bill and encouraged lawmakers to “KILL The BILL.” Until Thursday, House Speaker Mike Johnson was the main Republican defending the measure. Johnson said Trump was “not delighted that Elon did a 180.”
What to Watch
The bill, narrowly passed by the House, is now being debated in the Senate. Republican leaders hope to get it signed by July 4. But with growing resistance in the upper chamber and some House members expressing regret over what they voted for, delays are increasingly likely.
The legislation would extend Trump’s 2017 tax cuts, eliminate taxes on tips and overtime, and boost border security, funded partly by cuts to Medicaid.
Market Fallout
- Tesla: Down 14% Thursday, recovering 4.4% Friday morning.
- Trump Media & Technology Group: Dropped 8%, hitting its lowest price since April 16.
- Crypto: Ethereum down 7%, Solana 6%, Dogecoin 9%, and Bitcoin 3% by Thursday night.
Tangent
Musk and Trump’s strained relationship was evident during their joint press conference on May 30. Musk appeared agitated, fueling speculation about his state of mind. Social media lit up after a New York Times report alleged Musk engaged in heavy drug use during the 2024 campaign. The CEO, who showed up with a black eye, said he was injured by his five-year-old son.
