Trump–Musk Clash Erupts Publicly as Musk Teases New Political Party

Elon Musk, who previously led the Trump administration’s newly created Department of Government Efficiency, and contributed over $250 million to Trump’s 2024 campaign, has publicly criticized the administration's "One Big Beautiful Bill Act." Musk called the legislation a "disgusting abomination," warning it would exacerbate the national debt, which currently stands at $36.2 trillion.

The bill, which has passed the House and awaits Senate approval, proposes extensive tax cuts and spending reductions, including the elimination of subsidies for electric vehicles—a move directly impacting Musk's Tesla.

In response to Musk's criticism, President Trump expressed disappointment and suggested that Musk's objections were rooted in the bill's cuts to electric vehicle incentives. Trump further threatened to terminate government contracts with Musk's companies, stating that doing so would save the government "Billions and Billions of Dollars."

Amid the escalating feud, Musk announced plans to decommission SpaceX's Dragon spacecraft, which currently serves as NASA's primary vehicle for transporting astronauts to the International Space Station (ISS). The Dragon capsule is the only U.S. spacecraft capable of carrying humans into orbit, and its removal from service could significantly disrupt ISS operations.

Musk also hinted at broader political ambitions by proposing the creation of a new political party. In a post on X, he asked his followers whether the United States needed "a new party that actually represents the 80% in the middle?" His remarks fueled speculation that he may be laying the groundwork for a political movement aimed at attracting independent voters, libertarians, and disaffected moderates from both major parties.

The public spat has also rattled investors. Tesla's stock plummeted over 14% on Thursday, erasing nearly $150 billion in market value. Analysts attribute the decline to concerns over potential regulatory hurdles and the future of Tesla's autonomous vehicle initiatives, which are central to the company's growth strategy.

The feud has exposed fissures within the Republican Party. While some GOP lawmakers, like Senator Rand Paul and Senator Mike Lee, have echoed Musk's fiscal concerns, the party largely remains aligned with Trump's agenda.

Democrats have seized on the discord, with House Minority Leader Hakeem Jeffries publicly aligning with Musk's critique of the bill. The controversy has also prompted discussions about the influence of major donors in shaping policy and the potential need for campaign finance reforms.

As the Senate prepares to debate the "One Big Beautiful Bill Act," the Trump-Musk feud underscores the complexities of political alliances and the potential consequences when personal and policy disagreements intersect. The situation remains fluid, with implications for the future of U.S. space exploration, electric vehicle adoption, and the broader political landscape.