US President Donald Trump has voiced strong disappointment with Elon Musk following the tech mogul’s sharp criticism of a major policy initiative from the White House.
The rift marks a notable breakdown in what had previously appeared to be a cordial and strategic relationship between the two influential figures.
At the heart of the dispute is President Trump’s recently proposed energy and spending bill, which seeks to eliminate federal tax credits for electric vehicles by 2026 and impose a new $250 annual fee on EV owners.
The bill also boosts incentives for oil and gas production — a shift Trump argues is essential for restoring American energy independence.
Musk, CEO of Tesla and SpaceX, has publicly slammed the proposal, accusing the administration of undermining the electric vehicle sector while continuing to support fossil fuel giants.
He criticized the bill as bloated and short-sighted, claiming it was pushed through without sufficient debate and is riddled with partisan favoritism.
President Trump, in response, labeled Musk’s remarks “disappointing” and described the entrepreneur as a “surprise turncoat,” suggesting Musk’s outrage stems from Tesla’s potential financial losses under the new law.
Trump defended the bill as a necessary correction to what he called “lopsided incentives” that unfairly benefitted one industry over others.
The clash has sent shockwaves through markets, with Tesla’s stock tumbling nearly 9% in the wake of the feud. Investors are now watching closely to see whether this public fallout will escalate or stabilize.
Once seen as an informal adviser and a visible ally — even hosting a Tesla vehicle demonstration on the White House lawn — Musk’s growing opposition signals a dramatic realignment in Trump’s network of high-profile supporters.
