Inside the Trump-Musk breakup: Key reasons behind their rift

The friendship between US President Donald Trump and billionaire Elon Musk has turned hostile amid escalating disagreements. 

New bill ends electric vehicle tax credit

The primary conflict centers around Trump’s “big, beautiful bill,” a major tax and spending legislation that Musk strongly criticised as “disgusting.” 

This bill notably eliminates a consumer tax credit worth up to $7,500 for electric vehicle (EV) owners, something Tesla had heavily lobbied to preserve.

Musk reportedly urged Trump privately to retain the subsidy but later publicly condemned the bill, which deeply disappointed Trump, especially since Musk was familiar with its details beforehand.

 The tax bill is central to Trump’s domestic agenda and crucial for the Republican Party’s future success.

Musk pushed for Starlink to be used by air traffic controllers.

Another source of friction involves Musk’s request for the Federal Aviation Administration (FAA) to approve the use of his Starlink satellite technology, which was denied due to conflict-of-interest and technical concerns.

Musk’s involvement in the West Wing also raised conflict-of-interest alarms, prompting 42 Democrats to urge the Pentagon’s inspector general to investigate SpaceX’s potential role in Trump’s Golden Dome anti-missile defense system.

Read: Elon Musk exits Trump administration after disagreement over ‘big, beautiful bill’

Trump cancels Jared Isaacman’s nomination for NASA’s next chief

Trump’s decision to withdraw Musk’s preferred nominee, Jares Isaac, for NASA chairman further strained their ties. 

Some sources claim that Sergio Gor, director of the White House Office of Presidential Personnel, whom Musk dislikes and has clashed with, was behind the decision to drop Isaac’s nomination as an act of revenge against the billionaire.

“Elon and I had a great friendship, but I’m not sure if it will continue," Trump told reporters at the Oval Office alongside German Chancellor Friedrich Merz on Thursday.

This comment came shortly after Musk resigned from leading the Department of Government Efficiency, a role aimed at reducing federal spending.

Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.

— Elon Musk (@elonmusk) June 5, 2025

The personal attacks intensified when Musk linked Trump’s name to Jeffrey Epstein, the convicted sex offender, who was arrested in July 2019 and took his own life during the trial.

Epstein was known for hosting influential global figures at private gatherings, some of which allegedly involved underage victims.

According to the BBC, the allegations involving Trump in the Epstein files are not new, as the documents containing his name have already been made public. 

After Trump threatened to cut subsidies and contracts for Musk’s companies, Tesla’s stock plunged 14.3%, wiping out roughly $150 billion in market value in a single day.

Musk responded to the subsidy threat by announcing plans to shut down SpaceX’s Dragon spacecraft program, the only US vehicle currently ferrying astronauts to the International Space Station.

Adding fuel to the fire, Musk publicly supported the idea of impeaching Trump, despite the low chances of it happening because the Republican Party controls Congress.