New Delhi: US President Donald Trump and Tesla CEO Elon Musk are at loggerheads yet again over Trump’s ‘Big Beautiful Bill’.
On Monday, Musk threatened to start a new political party, The America Party, if what he calls the “utterly insane and destructive bill” is passed.
The bill is scheduled to be passed on 4 July. Trump said in a Truth Social post Monday that the bill “is moving along nicely!”
The former ally then took to X to voice his opposition.
“If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE,” Musk wrote on X.
If this insane spending bill passes, the America Party will be formed the next day.
Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.
— Elon Musk (@elonmusk) June 30, 2025
Trump, on his part, Tuesday accused Musk of reaping historic levels of government support: “Elon Musk may get more subsidy than any human being in history, by far. Without it, he’d have to close up shop and head back home to South Africa.”
The escalating feud marks a dramatic reversal in Musk’s relationship with Trump. Once a close ally, Musk played a key role in Trump’s administration as head of the Department of Government Efficiency (DOGE), a federal initiative aimed at reducing government spending. He departed the White House at the end of May this year, amid growing tensions over the bill.
DOGE claimed it saved $190 billion, though a report from the nonpartisan Partnership for Public Service (PSP) suggests the abrupt and often chaotic cuts may have cost taxpayers as much as $135 billion.
The proposed legislation, currently under Senate review, has drawn sharp criticism from the tech billionaire, who argues it represents irresponsible fiscal policy and a betrayal of future-focused industries.
While Musk and Trump once shared a vision of slashing spending on social safety nets, environmental regulations, health programmes and foreign aid, their alliance has fractured over this latest proposal.
Musk has expressed disdain for both the Senate and House versions of the bill, which the Congressional Budget Office estimates would add $3.3 trillion and $2.4 trillion to the deficit, respectively.
Beyond the fiscal concerns, Musk is also criticising the bill for cutting subsidies to electric vehicles. “This bill gives handouts to industries of the past while severely damaging industries of the future,” he said, referring to its rollback of clean energy incentives.
Responding to his claims, Trump wrote, “Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one … .No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”
(Edited by Sugita Katyal)