Donald Trump publicly rebuked Elon Musk on Thursday, suggesting the Tesla CEO’s recent criticism of a government spending bill stems from frustration over the administration’s decision to roll back the electric vehicle (EV) mandate.
“Elon knew the inner workings of this bill better than almost anybody,” Trump told reporters in the Oval Office, adding that Musk’s complaints only surfaced after learning the EV mandate would be cut.
While acknowledging a once-strong relationship with Musk, Trump remarked, “I don’t know if we will [have one] anymore. I was surprised.”
The feud marks a sharp turn in their relationship, as Musk previously served in Trump’s cabinet-level Department of Government Efficiency (DOGE) and was a vocal supporter during the 2024 campaign. Musk has slammed the bill as a “disgusting abomination,” urging Americans to pressure lawmakers to reject it.
Musk's response on X? A terse “Whatever."
'Twilight Zone' for markets
Wedbush analyst Dan Ives described the conflict as a “Twilight Zone moment” for markets, with Tesla stock sliding 15% amid fears of shifting regulatory headwinds.
“This situation between Musk and Trump could start to settle down and the friendship continues but this must start to be calmed down on the Musk and Trump fronts and it's not good for either side,” Ives wrote.
Despite the turmoil, Wedbush maintains a bullish stance on Tesla's long-term prospects in autonomous vehicles, though Ives acknowledged the fight “clearly does put a fly in the ointment of the Trump regulatory framework going forward.”