The alliance between US President Donald Trump and tech billionaire Elon Musk has come to a dramatic end. Many say it was inevitable. Their teamwork had helped Trump and the Republican Party secure a sweeping victory in the 2024 elections.

However, that partnership is now crumbling. At the center of their dispute is Trump’s proposed tax reform, called the "One Big Beautiful Bill."

Why Musk Opposes Trump's Bill

Trump believes the bill will fuel massive economic growth. But the Congressional Budget Office warned it could add $2.5 trillion to the national deficit over the next ten years.

Elon Musk, now head of the Department of Government Efficiency (DOGE), strongly opposes the bill. He had promised to reduce the deficit by cutting federal spending and restructuring government agencies.

Musk is especially upset that the bill undermines his cost-cutting goals and removes tax credits for electric vehicles—a direct hit to his company, Tesla. As a result, tensions between Trump and Musk exploded into public.

Political Fallout for Trump

Trump may suffer politically from this split. Musk had been a major supporter, both financially and strategically. Now, Musk’s criticism gives Republicans room to oppose the bill.

For instance, Florida Governor Ron DeSantis has echoed Musk’s concerns. The bill must still pass through the Senate, and Musk’s opposition could stall or derail it.

Musk's Financial Influence

Musk wasn’t just a political ally—he was a key donor. He gave around $250 million to Trump’s 2024 campaign. He also planned to fund Republican efforts in the 2026 midterms.

Without Musk’s backing, the Republican Party faces an uphill battle in keeping control of Congress. Plus, Musk’s control of social media platform X (formerly Twitter) helped amplify Trump’s message to millions globally.

Backlash for Musk Too

But Musk also faces consequences. He resigned from the Trump administration in May to return his focus to Tesla and SpaceX.

SpaceX, over the years, has received billions in government subsidies and contracts. Now, Trump has threatened to cancel those contracts, which sent Tesla’s stock plummeting.

Investors had hoped Musk’s closeness with Trump would bring business benefits. That hope now appears lost.

Political Risks and Personal Attacks

Musk is now under growing pressure. Even conservatives have turned on him following his open criticism of Trump.

Earlier, Musk had faced protests and even acts of arson related to his work with DOGE. With the fallout intensifying, political attacks against him could grow louder.