Elon Musk and Donald Trump's Epic Clash Over Budget Plans
Budget discord: Trump and Musk at odds over financial proposals - Financial disagreement surfaces between Trump and Musk
Let's dive into the heated battle between Elon Musk and Donald Trump over budget plans.
Musk, the Tesla CEO, who recently ended his stint as Trump's advisor, slammed a proposed tax law by Trump, branding it as "disgusting", "brazen", and an "abomination" earlier this week. As Trump's advisor, Musk played a pivotal role in cutting staff and expenses across various government departments.
Trump, during the visit of Chancellor Friedrich Merz (CDU) to the White House, initially expressed his "great disappointment" over Musk's criticism of the planned law, hinting he might not continue to maintain a friendly relationship with his former advisor. "Elon and I used to get along pretty well. I'm not sure if that's still the case. I was caught off guard," said Trump.
"I'm really disappointed," Trump said, citing Musk's in-depth understanding of the law as he "knew the background of it better than almost anyone else here." "Suddenly, he had a problem," added Trump.
Musk responded by accusing Trump of inconsistency on the online service X. "Where the hell is the man who wrote these words? Or has he been replaced by a clone?" Musk asked, referring to old tweets from Trump criticizing an increase in the state budget.
Trump later escalated the feud towards Musk on Thursday. He called Musk "bonkers" in a post on his Truth Social platform, urging Musk to take a hike. In another post, Trump threatened: "The easiest way to save billions and billions of dollars in our budget is to axe Elon's state subsidies and contracts."
This controversial bill aims to extend the massive tax cuts implemented during Trump's first term (2017-2021) that would otherwise expire at the end of the year. In an effort to offset this extension, drastic cuts are proposed for the health insurance program Medicaid, primarily covering low-income and older people, and support for food aid for the poor, which could impact up to 3.2 million people.
Trump is pushing the Senate to pass the law by July 4th, despite reservations from even fellow Republicans, due to concerns with the Bill's 1116 pages. The Bill has already been approved in the House of Representatives.
As a result of the public spat, Tesla's stock took a nose dive on Thursday. The electric car giant's stock plummeted by more than 14 percent to $285.41 (€249.51). This downturn cost Tesla over $100 billion in market capitalization.
The dispute is rooted in Musk's objection to the proposed elimination of electric vehicle subsidies, a move that could potentially undermine Tesla's business model.
Currently, Tesla depends on these subsidies to cater to the cost differences between electric and gasoline-powered vehicles. Musk fears the elimination could disrupt Tesla's operations and make electric vehicles financially inaccessible for many. The proposed elimination is part of a broader plan to repeal clean energy tax credits, a move that could impact Tesla significantly.
Enrichment Data:- The dispute between Donald Trump and Elon Musk is based on Musk's opposition to the elimination of electric vehicle subsidies, as he perceives it as a threat to Tesla's financial stability and accessibility of electric vehicles.- Trump's budget bill aims to extend tax cuts from his first term, which would otherwise expire by the end of the year, and offset these extensions with drastic spending cuts in programs like Medicaid and food aid for the poor. The plan targets to repeal clean energy tax credits, including vehicle subsidies, which could impact Tesla and the electric vehicle industry.
- Friedrich Merz, while visiting the White House, found himself in the midst of a dispute over budget plans, as Elon Musk, the former advisor to Donald Trump, publicly criticized Trump's proposed tax law for being an abomination, causing a potential strain in their relationship.
- The controversy is rooted in Musk's objection to the proposed elimination of electric vehicle subsidies, a move that could significantly impact Tesla's financial stability and the accessibility of electric vehicles for many.
- This budget dispute is part of a larger political narrative, with implications found in policy-and-legislation, war-and-conflicts,general-news, crime-and-justice, and politics, as Trump continues to push for his tax law extensions, impacting various sectors and programs, while Musk opposes these changes that he sees as detrimental to Tesla and the electric vehicle industry.
