Tensions between Elon Musk and the Trump administration have escalated sharply following the billionaire's public denouncement of President Trump's flagship budget bill, which he called a "disgusting abomination." Behind the scenes, sources say Musk's frustration extends beyond spending levels to specific policy exclusions that impact his companies and inner circle.
On Tuesday, Musk unleashed a string of attacks on X (formerly Twitter), writing, "Mammoth spending bills are bankrupting America! ENOUGH." His posts coincided with a White House press briefing and took Trump's team by surprise, according to people familiar with the situation.
The conflict appears to have several roots. One major point of contention is the bill's rollback of electric vehicle tax credits, a move that directly affects Tesla. While Musk had previously called for ending the subsidy after the 2023 election, Tesla has since reversed course. "Abruptly ending the energy tax credits would threaten America's energy independence and the reliability of our grid," Tesla posted on social media. The company has reportedly spent over $240,000 lobbying to protect the provision.
Another flashpoint is the administration's AI policy. Sources said Musk was angered by the government's deals with OpenAI, a key competitor, which excluded his own artificial intelligence startup. Despite lobbying efforts, the contracts moved forward without his company's involvement.
Musk's role as a special government employee-an unpaid advisory position-also became a source of friction. He had expressed interest in extending his tenure past the statutory 130-day limit, but White House officials denied the request.
In aerospace, Musk reportedly lobbied for the Federal Aviation Administration to adopt his Starlink satellite system for national air traffic control. The proposal was rejected due to perceived conflicts of interest and operational feasibility. "You can't have air traffic control just run off satellites," one source familiar with the discussions said.
The final rupture came over the weekend, when President Trump unexpectedly pulled the nomination of Jared Isaacman-an ally of Musk and founder of private spaceflight firm Shift4-as NASA administrator. While White House insiders cited Senate concerns about Isaacman's donations to Democrats, Musk reportedly viewed the move as a targeted insult.
"This was Sergio's out-the-door 'f**k you' to Musk," a White House official said, referring to presidential personnel director Sergio Gor, who had clashed with Musk internally. Others denied this, asserting the decision was rooted in political strategy. Still, a second official added, "Perception is reality, though, and I'm pretty sure Elon thought the NASA situation was a last insult."
Despite their public alignment on several issues, Musk's relationship with Trump is showing signs of strain. "Elon was butthurt," one source told Axios, describing the abruptness of Musk's online retaliation. Both Musk's team and the White House declined to comment on the record.
