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Why are Elon Musk and Donald Trump fighting? | TechCrunch

Jun 05, 2025 - techcrunch.com
President Donald Trump and Elon Musk have publicly fallen out, primarily over the One Big Beautiful Bill Act, a controversial piece of legislation that cuts taxes but increases the national debt and makes significant cuts to federal healthcare programs. Musk, once a key figure in Trump's circle, criticized the bill for its negative impact on his businesses, particularly the removal of the EV mandate. The fallout escalated with Musk accusing Trump of being involved in the Epstein Files and predicting a recession due to Trump’s tariffs. Trump retaliated by suggesting the termination of Musk's governmental subsidies and contracts.

The dispute has broader implications for the tech industry, as other tech leaders who supported Trump may face similar challenges due to his policies. The public spat has generated significant attention on social media, with both figures exchanging jabs and accusations. The situation highlights the volatile relationship between politics and the tech industry, with potential repercussions for both sectors.

Key takeaways:

  • Elon Musk and President Donald Trump have publicly fallen out over the One Big Beautiful Bill Act, which Musk criticized for its spending and impact on the national debt.
  • The bill, which aims to cut taxes and invest in American businesses, is expected to increase the national debt by $2.4 trillion over 10 years and has faced opposition from some Republican senators.
  • Musk's discontent with the bill is partly due to its potential negative impact on his businesses, particularly the removal of the EV mandate.
  • The fallout between Musk and Trump has broader implications for the tech industry, as other tech billionaires have previously supported Trump's policies, which have affected their businesses.
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