By early July 2025, it has become clear that the uneasy truce between Elon Musk and President Donald Trump has shattered. The public spat that once seemed like an outlier in their transactional relationship is now spiraling into a fierce battle over the future of government spending, the political soul of the Republican Party, and the powerful federal subsidies supporting Musk’s business empire.

At the center of the renewed conflict is Trump’s flagship domestic policy proposal-dubbed the “Big, Beautiful Bill”-which narrowly cleared a Senate procedural vote this past weekend. The legislation, championed by Trump as a cornerstone of his second-term agenda, promises sweeping infrastructure investments, expanded tax cuts for middle-income Americans, and broad deregulation. But critics-Musk chief among them-warn that it could blow a $3.3 trillion hole in the national deficit over the next decade.

On July 1, Musk unleashed a barrage of criticism on X, his social media platform, denouncing lawmakers who voted for the bill and pledging to bankroll primary challengers against them. While he stopped short of naming Trump directly in his initial posts, the subtext was unmistakable.

“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk wrote. “And they will lose their primary next year if it is the last thing I do on this Earth.”

By July 1, the conflict had clearly escalated. Tesla’s stock, already reeling from the previous day’s losses, fell another 7%, as investors feared retaliation from the Trump administration. That added to the 14% decline the company suffered in early June, when Musk and Trump’s feud first spilled into public view.

Tesla shareholders have reason to worry. While Tesla earns relatively little directly from federal contracts, its business is tightly intertwined with federal policy.........

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