The once-solid partnership between President Donald Trump and Tesla's CEO Elon Musk has taken a nosedive, spiraling into a public spat mainly over the controversial "One Big Beautiful Bill." This proposed legislation seeks to revamp federal spending, which includes cutting out electric vehicle (EV) tax credits. Musk hasn't held back, calling the bill a "disgusting abomination" that could balloon the national deficit by a staggering $2.5 trillion and hurt Tesla's business prospects.

In light of Musk's harsh words, President Trump didn't mince his feelings, expressing that he was "very disappointed" with Musk's position and even labeled him a "surprise." Trump suggested that Musk's backlash might be linked to the bill's potential to lessen federal backing for electric vehicles. He also hinted at the possibility of pulling federal contracts and subsidies tied to Musk, which could spell trouble for companies like SpaceX that depend on government collaborations.

This public disagreement has already made waves in the market, with Tesla's stock taking a significant hit. Investors are clearly rattled by the uncertainty surrounding federal support for EVs and the looming loss of tax credits, which play a crucial role in Tesla's pricing strategy. Analysts are sounding the alarm that the proposed legislation could slash Tesla's profits by more than $3 billion due to the removal of tax credits and other incentives.

With no sign of reconciliation—Trump has publicly stated he has “no interest” in engaging with Musk—analysts expect the Trump Musk feud to intensify in the days ahead. Investors will be watching for potential policy shifts affecting Tesla or SpaceX contracts, while political observers are monitoring how the rift might fracture the “tech‑right” coalition. Should Musk’s threats shift into legal arenas—or should Trump follow through on contract cancellations—the implications could resonate across markets, government agencies, and the GOP’s campaign strategy.