Elon Musk, one of Donald Trump’s most high-profile backers and donors, has turned sharply against the president’s flagship economic legislation, calling it a “disgusting abomination” and warning of dire financial consequences. Last year, Musk contributed over $250 million to Trump’s 2024 campaign and was a key player in Republican fundraising. “It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden American citizens with crushingly unsustainable debt,” Musk wrote on X. He doubled down with another message for Republican lawmakers: “Shame on those who voted for it: you know you did wrong. You know it.”
White House press secretary Karoline Leavitt dismissed Musk’s criticism, saying, “Look, the president already knows where Elon Musk stood on this bill. It doesn’t change the President’s opinion. This is one big, beautiful bill, and he’s sticking to it.”
Musk’s objections stem not only from economic concerns but also from how the bill affects Tesla’s business. The legislation would roll back incentives for electric vehicles, a core component of Musk’s companies.
This public rebuke marks a dramatic shift from Musk’s previous position. Until last week, he headed the Department of Government Efficiency(DOGE), a short-lived advisory body tasked with identifying ways to cut federal spending. Musk stepped down just before launching his online tirade. Musk exit as DOGE head on May 28.
Trump, on the other hand is very confident about the benfits of the bill. In a recent post on X, he wrote: “So many false statements are being made about “THE ONE, BIG, BEAUTIFUL BILL,” but what nobody understands is that it’s the single biggest Spending Cut in History, by far! But there will be NO CUTS to Social Security, Medicare, or Medicaid.”
The bill has become a lightning rod for criticism not only from Democrats but also from fiscal conservatives, who say it prioritises political optics over responsible governance. The Congressional Budget Office and independent analysts estimate the bill could add between $2.3 trillion and $5 trillion to the national deficit over the next decade.
The legislation in question, which has already passed the House and is being debated in the Senate, aims to extend the 2017 tax cuts and introduce new ones. It also proposes a $350 billion boost in funding for border security, deportations, and national security. To offset the spending, it slashes funds for Medicaid, food stamps, and green-energy tax credits – changes that would directly affect subsidies supporting Tesla and the wider electric vehicle sector.
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