Elon Musk’s Rift with Trump Deepens Over “Beautiful” Bill That Hurts EV Sector

Elon Musk has taken aim at Donald Trump’s signature legislative effort—the One Big Beautiful Bill Act—arguing that it contradicts the fiscal responsibility agenda he once championed. In an interview preview with CBS, Musk stated that the bill increases spending and undermines the objectives of Doge, the government efficiency task force he led.
The bill, passed by a narrow House margin, eliminates clean energy incentives and imposes new fees on electric vehicle owners. It also funds controversial immigration enforcement measures while simultaneously slashing safety net programs such as Medicaid and food stamps. Despite these cuts, the bill is forecast to raise the deficit by $2.3 trillion.
Musk’s statement signals a sharp break with the president he helped support with $200 million in campaign donations. With Tesla facing serious headwinds—from a 71% drop in profits to a falling stock price—the EV entrepreneur appears to be recalibrating his political alliances and messaging.