Tesla Tumbles 8% as Trump-Musk Feud Over ‘Big Beautiful Bill’ Shakes Markets

In a dramatic turning point, Tesla Tumbles 8% as Trump-Musk Feud Over ‘Big Beautiful Bill’ Shakes Markets. Tesla shares plunged over 8% on Thursday, following a fiery public spat between President Donald Trump and Tesla and SpaceX CEO Elon Musk.

The drop comes in the wake of Trump’s sweeping tax and spending legislation, dubbed the “Big Beautiful Bill,” which eliminates tax credits for electric vehicles (EVs)a major blow to Musk’s flagship company.

The rift marks a turning point in what was once a high-profile alliance. From government collaboration to personal admiration, the Trump-Musk relationship has deteriorated into a full-blown feud, playing out in real-time across social media and press briefings.

Tesla Tumbles 8% as Trump-Musk Feud Over ‘Big Beautiful Bill’ Shakes Markets

Trump Slams Musk: “I’m Very Disappointed”

Speaking from the Oval Office, President Trump publicly criticized Musk for opposing the bill, suggesting the billionaire’s motivations were personal.

“Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump said. “He only developed a problem when he found out we were cutting the EV mandate. I’m very disappointed in Elon. I’ve helped Elon a lot.”

Trump’s comments come just days after Musk resigned from the Department of Government Efficiency (DOGE), a federal initiative focused on reducing government expenditure. Their fallout escalated quickly after the House passed the President’s bill in a narrow 215-214 vote.

Musk Hits Back: “Disgusting Abomination”

Elon Musk wasted no time in responding, blasting the bill on his social media platform X and calling it a “disgusting abomination.” Musk accused Trump of ramming the bill through Congress without proper scrutiny:

“This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!” He also urged Americans to contact their lawmakers and demand they “kill the bill,” even calling it “The Debt Slavery Bill.”

Musk’s Exit from DOGE and Fallout with Trump

Musk’s criticism of the bill intensified after his exit from DOGE, where he was previously a close adviser to Trump. Initially, Musk labeled the bill “disappointing,” but his tone has turned more confrontational as the legislation gained momentum.

The Tesla boss has since claimed that Trump’s betrayal is deeply personal, and that the President has shown “ingratitude” despite Musk’s significant financial support during Trump’s election campaign. “Without me, Trump would have lost the election. Democrats would control the House,” Musk posted on X.

SpaceX Takes a Hit: Dragon Program Retired

In a retaliatory move, President Trump hinted at canceling federal subsidies and contracts tied to Musk’s companies. “The easiest way to save billions in the budget is to terminate Elon’s governmental subsidies,” Trump posted on Truth Social.

Shortly afterward, Musk announced the immediate shutdown of SpaceX’s Dragon spacecraft program, signaling the collapse of cooperation between his space company and the federal government.

Tesla Share Price Reacts: Investors Jittery

The fallout triggered immediate panic in financial markets. Tesla’s share price dropped over 8%, as Wall Street reacted to the elimination of EV tax credits and fears that Musk’s deteriorating relationship with Washington could affect future contracts and regulatory decisions.

Despite the decline, Tesla remains the most valuable EV maker globally, but analysts warn that continued political instability could spook investors further.

Capitol Hill Drama: Bill Passed by Narrow Margin

Trump’s “Big Beautiful Bill,” now passed by the House, represents a massive overhaul of the U.S. tax and spending structure. It includes multi-trillion-dollar tax cuts, significant reductions in federal programs, and the elimination of clean energy incentives, including those for EVs.

The Congressional Budget Office (CBO) estimates the bill will add $2.4 trillion to the national deficit over the next decade, and leave over 10 million Americans without health insurance. Critics, including Musk, argue the bill is fiscally reckless.

Musk Drops Epstein Bombshell

The feud took a darker turn when Musk referenced the sealed Jeffrey Epstein files, accusing Trump of being named in the documents.

“Donald Trump is in the Epstein files. That’s the real reason they haven’t been made public,” Musk claimed in a shocking X post.

The explosive accusation adds fuel to an already volatile situation, drawing media and public scrutiny to both parties and deepening the political divide.

From Allies to Enemies: Trump vs Musk Showdown

The Musk-Trump breakdown highlights a rare public fallout between two of America’s most powerful figures. What started as a cooperative friendship, marked by praise and political backing, has spiraled into one of the most dramatic political-business feuds in recent memory.

“Elon has Trump Derangement Syndrome,” Trump quipped, mocking Musk’s relentless criticism.

In contrast, Musk sarcastically reposted Trump’s past praise and pointedly asked, “Was he replaced by a body double?” a reference to Trump’s earlier conspiracy theories about Biden.

What’s Next for Tesla and U.S. Politics?

With Tesla’s future federal support now in question and Musk threatening further business withdrawals, the consequences of this fallout may echo for months. Musk’s resistance may also embolden Republican fiscal conservatives, who are already skeptical of Trump’s growing government spending.

On the other hand, Trump’s camp insists the “Big Beautiful Bill” is a cornerstone of his second-term vision and is essential to keeping taxes low and reining in spending. Whether the Senate follows suit remains to be seen.

Conclusion: Tech Titans and Power Plays

The Trump vs Musk feud has moved beyond personal grievances it’s now a full-blown political and economic confrontation with real-world consequences. From Tesla stock volatility to SpaceX shutdowns and EV policy rollbacks, the impact is widespread. With Elon Musk doubling down on his opposition, and Donald Trump leveraging presidential power, this battle of billionaires is far from over.

Also Read: Trump vs Musk: Billionaire Feud Rattles Washington, Wall Street, and GOP Unity

Also Read: A White House staffer may have triggered the Trump-Musk feud. Here’s how