The squabble between President Donald Trump and his former Department of Government Efficiency chief, Elon Musk, escalated quickly on Thursday.
Musk has spent the week coming out forcefully against the Trump-backed “Big Beautiful Bill,” saying it will increase the nation’s debt and bankrupt the country.
Trump and members of his administration have refuted the Congressional Budget Office estimates on the cost of the legislation and noted that the same organization has calculated that the president’s tariffs will bring in nearly $3 trillion over the next 10 years, more than paying for the cost of the bill.
Trump said during a news conference from the Oval Office with German Chancellor Friedrich Merz on Thursday that the real reason Musk opposes the legislation is that it phases out tax credits for electric vehicle purchases and other green energy initiatives that benefit Tesla, the electric vehicle company Musk owns.
“They want us to pay billions of dollars in subsidy,” Trump said. “I can understand why he’s upset. Remember, he was here for a long time. You saw a man who was very happy when he stood behind the Oval desk.”
The president gave Musk a gold key Friday in recognition of his work with DOGE, as his time as a special government employee came to a close.
“Elon and I had a great relationship. I don’t know if we will anymore. I was surprised,” Trump said after Musk’s posts on social media this week called the bill “disgusting” and “pork-filled” and called for the bill to be killed.
President Donald Trump says he understands why Tesla CEO Elon Musk is not happy with his proposed tax bill that cuts to electric-vehicle tax credits https://t.co/LPHbBmy6hs pic.twitter.com/KCFilLNlDp
— Bloomberg TV (@BloombergTV) June 5, 2025
He further asserted that Musk only had a problem with the Big Beautiful Bill “when he found out that we’re going to have to cut the EV mandate because that’s billions and billions of dollars.”
In posts on Truth Social after the Oval Office meeting, Trump said, “Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!”
The president’s indication that he asked Musk to leave runs contrary to the narrative that Musk simply departed from DOGE because his allotted time as a special government employee expired.
Donald J. Trump Truth Social 06.05.25 02:37 PM EST pic.twitter.com/vlq4FwkkpB
— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 5, 2025
Musk responded to the post, writing, “Such an obvious lie.”
Such an obvious lie. So sad. https://t.co/sOu9vqMVfX
— Elon Musk (@elonmusk) June 5, 2025
The president got even more pointed, adding, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”
Donald J. Trump Truth Social 06.05.25 02:37 PM EST pic.twitter.com/IojHzVyg83
— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 5, 2025
Trump then defended the Big Beautiful Bill, posting, “I don’t mind Elon turning against me, but he should have done so months ago.
“This is one of the Greatest Bills ever presented to Congress. It’s a Record Cut in Expenses, $1.6 Trillion Dollars, and the Biggest Tax Cut ever given. If this Bill doesn’t pass, there will be a 68% Tax Increase, and things far worse than that.”
House Speaker Mike Johnson also suggested on Tuesday that the bill’s phase-out of Biden-era green subsidies was the cause of Musk’s strong opposition to it.
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