Elon Musk criticized Trump's law, announced the cancellation of Dragon launches and supported impeachment

Yevgeny Demkivskyi - 6 June, 09:42 AM

US President Donald Trump and billionaire Elon Musk have publicly clashed over the One Big Beautiful Bill Act, which was passed by the House of Representatives on May 22, 2025.

The bill includes $3.7 trillion in tax breaks and cuts to government programs, including Medicaid and SNAP, which the Congressional Budget Office estimates will leave nearly 11 million Americans without health insurance by 2034. It also eliminates taxes on Social Security, tips, and overtime. However, analysts say the new cuts largely benefit wealthy families and significantly increase the national debt.

Musk publicly criticized the law: "This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it."

After that, Trump canceled the appointment of Musk's candidate, entrepreneur Jared Isaacman, to the post of head of NASA.

The conflict escalated further after Trump said Musk had gone "crazy" over the repeal of the EV mandate, a tax incentive that benefits Tesla. Musk responded by writing that Trump would never have won the election without him.

Musk went on to accuse Trump of being involved in the "Epstein files," called the president's tariffs the cause of the coming recession, and supported posts calling for impeachment.

Instead, Trump threatened on Truth Social to cancel Elon Musk's government subsidies and contracts, adding: "The easiest way to save billions is to cut off funding for Elon."

Musk posted a screenshot of Trump's post and added that as a result of the president's statement, he would be decommissioning SpaceX's Dragon spacecraft.

Analysts say the political standoff between Trump and Musk could have lasting consequences for SpaceX's defense and space contracts, as well as government policy on electric vehicles and artificial intelligence. The conflict has already weighed on Tesla, sending its shares down 14% and wiping $152 billion off its market value.