Musk’s fierce backlash rattles White House: Tesla’s ties to Trump cost billions

Elon Musk has launched a fierce public backlash against former President Donald Trump’s economic plan, dubbed the "One Big Beautiful Bill," which Musk called a "disgusting abomination."
The Tesla CEO’s opposition stems largely from the bill’s cuts to electric vehicle tax credits, which directly impact Tesla’s sales and profitability. A source familiar with the matter told NBC News that Musk’s criticism was partly motivated by these cuts.

The White House has expressed surprise and displeasure at Musk’s vocal condemnation, with an official telling CNBC that his public trashing was an unwelcome development.

In response to Musk’s attacks, the White House dismissed his criticisms as a "hoax," asserting the bill will reduce the deficit by $6.6 trillion over the next decade through tariffs, spending cuts, and regulatory rollbacks.

However, the bill’s economic impact remains contentious. While Trump’s team claims it will boost GDP by 2.6% to 3.2% long term and increase median household take-home pay by $5,000 annually, the Congressional Budget Office projects the legislation would add $3.8 trillion to the deficit, with Medicaid cuts only shaving $1 trillion.

Musk’s ties to the Trump administration have reportedly cost him billions, not only in lost personal wealth but also in reputational and legal damage to Tesla. The controversy highlights the risks of corporate entanglement in political agendas.

"Musk began vocally criticizing Trump's 'one big, beautiful bill' the day before, when he slammed it as a 'disgusting abomination.'"
"Musk, who has signaled he is refocusing on his electric vehicle and rocket businesses, was prompted to speak out against the bill in part because it cuts an EV tax credit that helps Tesla, a source familiar with the matter told NBC News on Tuesday."
"While Musk's opposition to the bill was already clear, his public trashing has been an unwelcome surprise at the White House, an official there told CNBC on condition of anonymity later Wednesday."
"Elon Musk has publicly condemned Donald Trump’s signature economic plan, calling the ‘One Big Beautiful Bill’ an ‘abomination’ and accusing it of undoing the cost-cutting work achieved by his Department of Government Efficiency."
"Meanwhile DOGE, which was originally tasked with cutting $2 trillion from the public deficit before the number was quickly marked down, cost Musk not only billions wiped off his personal wealth but also the reputational and criminal damage suffered by EV-maker as a result of the company’s ties to the Trump administration."

Elon Musk fiercely criticized Trump’s economic plan, calling the 'One Big Beautiful Bill' a 'disgusting abomination,' sparking White House backlash. Tesla’s ties to Trump have cost Musk billions amid cuts to EV tax credits, with the bill’s deficit impact and economic benefits hotly debated.