White House War Erupts: Donald Trump and Elon Musk Clash Over Billions in EV Subsidy Cuts—Tesla Stock Tanks as Friendship Implodes
Donald Trump blasts Elon Musk after massive GOP budget bill slashes electric vehicle incentives—Tesla shares plunge in response.
- $7,500 EV Credit on the chopping block in new GOP bill
- 8.5% Drop in Tesla’s share price after Trump’s remarks
- 634,000 Teslas sold in the U.S. last year—nearly half the EV market
- $10 Billion | Tesla’s solar and energy revenue in 2024
The political alliance between President Donald Trump and Tesla CEO Elon Musk ended in a stunning public feud this week, triggered by the largest rollback of electric vehicle (EV) and renewable energy subsidies in recent U.S. history. The rift exploded as Republicans pushed the “One Big Beautiful Bill Act” through the House—even as Tesla stock nosedived and Wall Street watched in shock.
Musk’s fierce criticism of the bill, which wipes out key Biden-era climate incentives, drew an unusually personal rebuke from Trump during a high-profile Oval Office meeting with German Chancellor Friedrich Merz. Trump alleged Musk’s outrage stemmed from the bill’s deep cuts to EV mandates and billions in government aid for Tesla, accusing Musk of knowing the details all along.
Meanwhile, the bill’s sweeping reach has sent waves through the American auto and energy landscape, raising major questions about the future of clean tech industries and U.S. climate policy.
Q: Why Are Trump and Musk at War Over This Bill?
The One Big Beautiful Bill Act eliminates or sharply reduces federal tax credits—including the popular $7,500 EV incentive—and rolls back tough tailpipe emission standards. These policies had turbocharged the U.S. shift toward electric cars during the previous administration.
Trump defended the move, telling reporters that EVs were “having a hard time” and saw government support as a crutch. He hinted Musk’s outrage was motivated by Tesla’s bottom line. With nearly half of America’s EV sales last year, Tesla stands to lose the most as buyers face steeper prices without the credits.
Musk immediately hit back on X, his own social platform, blasting the bill as “disgusting” and alleging it was rammed through Congress with little transparency. He also accused lawmakers of protecting oil and gas industry perks while gutting clean energy support—calling it “very unfair.”
Q: How Will This Bill Impact the Electric Vehicle Market?
If the bill passes the Senate, the era of generous federal support for EVs could abruptly end—potentially slowing consumer adoption just as more automakers launch new electric models. Tesla, already facing fierce competition from legacy brands like General Motors and new Chinese entrants, could see its American sales growth falter.
Within an hour of Trump’s televised comments, Tesla shares dropped 8.5%. Investors fear reduced EV demand and thinner margins as consumer incentives disappear and new rules ease pressure on manufacturers to go electric.
Q: What Does This Mean for the Trump-Musk Relationship?
The fallout was swift and dramatic. Musk, who once served as a close Trump ally and even spearheaded the controversial Department of Government Efficiency, saw his access to the presidency abruptly curtailed. Trump reminisced about their past friendship but suggested Musk’s criticisms showed classic “Trump Derangement Syndrome.”
Musk fired back online, implying Trump was ungrateful for his political support and undervaluing his role in Republican victories. This public escalation signals a sharp realignment in the business-political landscape for 2025—one where former allies have turned into fierce rivals.
How to Track the EV Policy Changes and Their Impact
- Monitor Senate proceedings for changes or pushback on the bill.
- Watch for response statements from Tesla, Ford, and GM.
- Follow financial news for updates on the auto market and Tesla stock.
- Check analysis from leading news outlets like Bloomberg and Wall Street Journal.
Stay informed on America’s shifting energy and political future. Sign up for news alerts, follow the debate, and keep your investments and interests protected!
- ✔️ Track new Senate votes on the budget bill
- ✔️ Compare EV models and updated price tags without federal credits
- ✔️ Watch Tesla and top automaker stocks for volatility
- ✔️ Follow Musk and Trump on X for the latest direct statements
- ✔️ Stay connected to breaking news at Detroit News
