Trump blasts Musk, Musk fired back
Trump issues Musk a warning of potential severe penalties amid disagreement over tax regulations - Trump issues Musk warnings of potential repercussions in tax law disagreement
In a stark turn of events, President Trump has taken aim at Elon Musk, the globe-trotting tech mogul and world's wealthiest individual. In an interview with NBC News, Trump labeled Musk as "disrespectful," but remained tight-lipped about the possible repercussions. In a bold move, he declared that he has no intention of bridging the rift with Musk and that he has no plans to engage with him in the future.
An Uneasy Alliance
Musk, who owns SpaceX, Tesla, and X, aligned with Trump's Make America Great Again (MAGA) movement in the summer of 2024. Musk generously backed Trump's right-wing populist campaign with an estimated $280 million (approximately 245 million euros). In return, Trump appointed Musk as his special advisor after his election win. Musk, however, relinquished his advisory role at the end of May.
A Strained Relationship
Since parting ways, Musk has become increasingly critical of Trump's tax plans, deeming them counterproductive for the economy and detrimental to America's financial health. The breaking point came during German Chancellor Friedrich Merz's (CDU) visit to Washington on Thursday, when Trump accused Musk of losing his marbles after Musk suggested that Trump would have lost the presidential election last November sans his support.
The Controversial Bill
Trump's latest bill, dubbed the "Big Beautiful Bill," lays out plans to extend the tax cuts from his first term, set to expire by year's end, and enforce deep cuts in the Medicaid healthcare program. Critics argue the legislation could boost the federal budget deficit by a staggering $3 trillion (around 2.64 trillion euros) over the next ten years, thanks to drastic cuts to Medicaid, which primarily provides insurance for low-income and elderly citizens.
The Looming Threat
Recent reports suggest that Trump is not just shouting empty threats at Musk. Instead, he has threatened to cancel Musk's federal contracts as a cost-cutting measure, which would save billions from the budget[2]. As Musk's federal subsidies have played a significant role in the growth of Tesla and SpaceX, the cancellation of such contracts could have a devastating impact on both companies.
In a related development, Trump has also reportedly revoked the EV mandate, a move that Musk had been aware of for months. The EV mandate requires automakers to produce a certain number of electric vehicles each year, and withdrawing it could leave a dent in Tesla's sales and revenue.
As the feud between the two powerful figures intensifies, only time will tell how this battle will unfold. Stay tuned for updates!
- Donald Trump
- Elon Musk
- Presidential Threats
- Tesla
- SpaceX
- US President
- Tax Cuts
- Medicaid Cuts
- Federal Contracts
- Electric Vehicle Mandate
- US Economy
- President Trump, in an interview with NBC News, labeled Elon Musk as "disrespectful," and stated he has no plans to engage with him in the future, but remained tight-lipped about potential consequences.
- Musk, who owns SpaceX, Tesla, and X, aligned with Trump's 2024 campaign, backing it with an estimated $280 million, but later relinquished his advisory role.
- Their relationship has since become strained, with Musk being critical of Trump's tax plans, which he deems counterproductive for the economy.
- Trump's latest bill, called the "Big Beautiful Bill," aims to extend tax cuts and cut Medicaid, a move critics argue could boost the federal budget deficit by $3 trillion over ten years.
- Trump has threatened to cancel Musk's federal contracts as a cost-cutting measure, which could have a devastating impact on Tesla and SpaceX, given their dependence on federal subsidies.
- In a related development, Trump has reportedly revoked the EV mandate, a move that Musk had been aware of for months, which could leave a dent in Tesla's sales and revenue.
- As the feud between the two powerhouses intensifies, the potential impact on Tesla, SpaceX, the US economy, and the relationship between Trump and Musk remains uncertain, with only time telling how this battle will unfold.
