What once looked like an alliance between two titans of American populism has descended into an all-out political brawl. Former President Donald Trump and tech mogul Elon Musk are now locked in a ferocious public dispute over a massive tax-and-spending package Trump has branded the “One Big Beautiful Bill.”
Musk, who has previously advised Trump and benefited from billions in federal subsidies under both Republican and Democratic administrations, erupted on June 30 with a blistering condemnation of the bill. He called it a “disgusting abomination” that betrays the very voters Trump once claimed to represent.
A billionaire alliance unravels in public view
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame,” Musk declared, according to Reuters. vowing to spend his own fortune to ensure their defeat in Republican primaries.
Musk’s post, which has since racked up over 250 million views, wasn’t just a rhetorical broadside. It marked a turning point — one that now threatens to fracture the Republican Party along lines of ideology, loyalty, and raw political ambition.
Musk hints at creating a new political force
Perhaps most explosive was Musk’s hint at founding a new political party. In a separate post, he floated names like the “America Party” or even the “Porky Pig Party” to mock what he described as a corrupt and bloated uniparty. While the announcement was laced with sarcasm, aides close to Musk confirmed that he is actively exploring political alternatives and may bankroll a slate of independent candidates.
According to Bloomberg, insiders at Tesla and SpaceX are bracing for political blowback as Musk escalates his rhetoric, aligning himself with fiscal hardliners and libertarian factions increasingly uneasy about Trump’s growing federal footprint.
“This is no longer just about spending,” said a senior Tesla executive who requested anonymity. “It’s about who really controls the future of the conservative movement — Trump or Musk.”
Trump hits back with insults and subsidy threats
Never one to let a challenge go unanswered, Trump launched his counterattack on July 1 through a string of posts on Truth Social. Calling Musk “ungrateful” and “overrated,” Trump claimed the billionaire owes his fortune to government subsidies and implied Musk would be irrelevant without taxpayer support.
“Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote, as reported by Firstpost.
The comment drew immediate backlash on social media for its racial and nativist undertones. But Trump loyalists rallied behind the former president, portraying Musk as a turncoat billionaire undermining a landmark legislative victory.
In another post, Trump threatened to investigate federal contracts held by Musk’s companies, directing the newly formed Department of Government Efficiency — known as DOGE — to begin audits. Trump campaign advisers are drafting proposals to end certain government deals with Tesla and SpaceX, potentially jeopardizing billions in defense and NASA contracts.
Tesla stock plunges as investors brace for fallout
Markets didn’t take the feud lightly. Tesla shares dropped nearly 14 % in mid-June when early signs of the clash first emerged. According to Reuters, the company temporarily lost over $150 billion in market value before a partial recovery.
A senior analyst, speaking on condition of anonymity, described the situation as a serious risk for Tesla, warning that Musk’s escalating feud with Trump is beginning to impact the company’s regulatory landscape, access to subsidies, and federal contract opportunities.
SpaceX, which has grown into the dominant force in satellite deployment and space logistics for both NASA and the Pentagon, could also see its public-private partnerships destabilized if Trump’s threats materialize.
A trillion dollar bill ignites an ideological war
At the heart of this feud lies a deeper ideological conflict: Trump’s strategy of expansive spending to cement political power versus Musk’s rigid fiscal conservatism. The “One Big Beautiful Bill” — a sweeping $3.3 trillion measure — combines corporate tax cuts, child tax credits, military expansion, and climate-related industrial incentives. Critics say it could balloon the national debt to unprecedented levels.
Musk, who once supported Trump’s deregulatory push, now sees him as a big-government populist cloaked in libertarian language.
“You can’t preach efficiency and then pass a bill this bloated,” Musk wrote on X. “It’s either a joke or a betrayal.”
The Tesla CEO’s growing circle of allies includes fiscal conservatives, independent influencers, and disgruntled Silicon Valley investors who see Trump’s bill as a betrayal of economic realism.
GOP donors split as Musk fuels a primary revolt
With Musk signaling that he may fund primary challenges to pro-Trump lawmakers, the GOP is bracing for a volatile 2026 midterm season. According to Bloomberg, donor networks are quietly realigning, with some bundlers preparing to back Musk-aligned challengers in Arizona, Texas, and Florida.
“This isn’t just Trump versus Musk,” said a senior RNC official speaking to Reuters. “This is a power test: who controls the money, the message, and the movement.”
Some Republican operatives now worry that the Musk-Trump standoff could split the party heading into the 2026 elections — with Trump loyalists accusing Musk of sabotage, and Musk’s supporters claiming the GOP has sold out to pork-barrel politics.
Two powerhouses collide in a fractured Republican future
As the “One Big Beautiful Bill” barrels toward Senate passage, the political universe surrounding it grows increasingly volatile. Elon Musk and Donald Trump — both celebrities, both influencers, both kings in their own empires — now find themselves locked in a collision course over the future of American politics.
Whether it ends in party fracture, political revenge, or another billionaire-powered movement remains to be seen. But what’s certain is that in 2025, one megabill has exposed just how fragile the alliance of power, populism, and personality really is.
