Why Trump's closest ally Musk has turned against his ‘one big beautiful bill’: All you need to know

Why Elon Musk turned against Donald Trump

Elon Musk, who was till last week part of US government and still considered close to US President Donald Trump, is now up in arms against latter's “Big Beautiful Bill,” urging Americans to contact their lawmakers to “KILL” the legislation.

Musk is now in an aggressive mission mode to block the tax bill after unsuccessfully trying to persuade Republican lawmakers to keep key electric vehicle tax credits in the legislation, Bloomberg reported citing sources.

The Tesla CEO, in a post on X, said, “Call your Senator, Call your Congressman. Bankrupting America is NOT ok!”

Call your Senator,Call your Congressman,Bankrupting America is NOT ok!KILL the BILL

Elon Musk (@elonmusk) June 4, 2025

Musk has appealed to House Speaker Mike Johnson to save the tax credit, Bloomberg reported. The House version of the tax measure calls for largely ending the popular $7,500 electric car subsidies by the end of 2025.

Let’s take a closer look at the possible reasons why Musk and Trump are drifting apart

1. The EV tax credit clash: One of the major bones of contention, which has probably soured the ties between Musk and Trump, is the proposed elimination of federal EV tax credits, an incentive considered vital to Tesla’s bottom line.

Under the current policy that was implemented under Biden-era Inflation Reduction Act, buyers can receive up to $7,500 for new EVs and $4,000 for used ones. The Biden-era credits have boosted Tesla's sales, with 336,000 vehicles sold in Q1 2025 alone.

This change could cost Tesla up to $1.2 billion as it faces declining demand, lower profits, and mounting political tension, said JPMorgan analyst Ryan Brinkman.

Musk, who previously lobbied to preserve the credits, has since turned sharply critical of the legislation, calling it “a disgusting abomination” and accusing Republicans of betraying fiscal responsibility. “I don’t know if a bill can be big and beautiful,” he told CBS.

2. Starlink vs. FAA air control: Musk was trying to nudge the Federal Aviation Administration (FAA) to adopt Starlink satellite system for national air traffic control, according to Axios.

However, the FAA rejected the proposal, citing technological limitations and potential conflicts of interest. “You can’t have air traffic control just run off satellites,” one source told Axios.

3. Musk's role in DOGE: Axios reported that Musk attempted to extend his role as a “special government employee” beyond the 130-day statutory limit for the unpaid advisory position, but White House officials ultimately ruled he could not continue.

Leading the Department of Government Efficiency (DOGE), Musk focused on reducing what was deemed wasteful spending, including federal layoffs and budget cuts. These moves triggered backlash and false fears that programs like Social Security and Medicare were at risk.

Despite Musk’s clarifications that DOGE had no control over entitlement programs, public criticism grew. “DOGE became the whipping boy for everything,” Musk told CBS, adding that concerns about Social Security cuts were “completely untrue.”

4. Trump withdraws Musk's ally: The final straw for Elon Musk came when Trump withdrew the nomination of Jared Isaacman, a Musk ally, to be NASA administrator.