The high-profile feud between Trump vs Elon Musk has erupted into a full-blown political and economic debate. What started as a disagreement over the U.S. government’s “Big, Beautiful Bill” has now turned into a public spectacle filled with personal attacks, policy disagreements, and even threats of creating a new political party.
At the center of this battle is the controversial tax bill that proposes eliminating the $7,500 federal tax credit for electric vehicles (EVs). This policy has sparked outrage from Elon Musk, whose Tesla empire heavily benefits from such incentives.
How the Trump vs Elon Musk Clash Began
The drama unfolded when U.S. President Donald Trump, posting on Truth Social, lashed out at Elon Musk, accusing him of being the biggest beneficiary of government subsidies in history. Trump wrote,
“Elon may get more subsidy than any human being in history, by far. Without subsidies, Elon would probably have to close up shop and head back home to South Africa.”
Trump further suggested that DOGE — Tesla’s internal cost-cutting team — should examine how much taxpayer money has been handed over to Musk through government contracts and EV subsidies.
EV Tax Credit Debate at the Core of the Fight
The key issue fueling the Trump vs Elon Musk feud is the proposed cancellation of the EV tax credit. This credit has historically provided a $7,500 incentive to consumers purchasing electric vehicles — a crucial driver for Tesla’s success in the U.S. market.
Trump made it clear that he has long opposed this policy, calling it a “ridiculous EV mandate.” In his words,
“Electric cars are fine, but not everyone should be forced to own one.”
Elon Musk, on the other hand, views the tax credit as essential for accelerating the transition to sustainable energy. Without it, EV prices would surge, and demand could decline — directly impacting Tesla’s bottom line.
Musk Hits Back: Threatens New Political Party
Not one to back down, Musk escalated the fight by threatening to form a new political movement — the “America Party.” He slammed Trump’s bill as the “Debt Slavery Bill”, claiming it would add more than $5 trillion to the national debt.
In a furious tweet, Musk stated,
“It is obvious with the insane spending of this bill… we live in a one-party country — the PORKY PIG PARTY!! Time for a new political party that actually cares about the people.”
This move signals a major shift in Musk’s political stance, as he was once seen as a supporter of Trump’s policies.
Not Just About EVs: Debt, Immigration & Subsidies Collide
While the Trump vs Elon Musk feud began with the EV tax credit, it quickly spiraled into broader issues. Musk criticized the government’s reckless spending, suggesting that the bill would enslave future generations under mounting national debt.
Adding fuel to the fire, U.S. Vice President JD Vance defended Trump’s bill while subtly jabbing at Musk. Vance argued that the true financial burden comes not from subsidies but from unchecked immigration and welfare policies, tweeting,
“The thing that will bankrupt this country isn’t this bill — it’s illegal immigration paired with massive handouts. This bill fixes that.”
This exchange shows that the debate is no longer just about electric vehicles — it’s about America’s financial future.
What This Means for Tesla and the EV Industry
If Trump’s tax bill passes, it could reshape the EV landscape in America. The removal of the $7,500 tax credit would not only impact Tesla but also other automakers like Ford and GM, who are ramping up their EV production.
For Tesla, this could lead to reduced demand, higher prices, and greater competition in global markets where subsidies remain intact. It also raises questions about the future of U.S. climate policies and the country’s commitment to sustainable transportation.
Is Musk Serious About a New Political Party?
Musk’s proposal to create a new “America Party” might sound extreme, but it reflects growing dissatisfaction among billionaires and tech leaders with traditional politics. Whether Musk is serious or using this as a pressure tactic remains to be seen.
Either way, the Trump vs Elon Musk feud highlights a deeper political shift — where economic policies, environmental goals, and personal egos collide on the national stage.
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