Republican allies close to the White House are privately arguing that the former special government employee — who spent Tuesday afternoon blasting the spending bill and threatening to retaliate against its supporters — is opposing the bill because it harms the tech billionaire’s business interests.
The House-passed megabill represents the president’s chief — and potentially only — major legislative priority this Congress. But Musk’s opposition suggests that the coalition that vaulted Trump to the White House is still facing internal disagreement over it as it makes its way through the Senate. It marks another dust-up between the MAGA and Tech Right. And it raises the possibility some members face pressure from Musk if they ultimately support it.
“The West Wing is perplexed, unenthused, and disappointed” with Musk, who left the White House to attend to his ailing business empire, according to one White House official, who like others interviewed for this story were granted anonymity to be candid about an ally who spent hundreds of millions to ensconce them in the White House.
Among other criticisms, Musk posted to X on May 29 that the bill would not “change tax incentives for oil & gas, just EV/solar,” and Tesla Energy has also come outagainst the bill. ·
The legislation terminates multiple tax credits that Tesla — as one of the largest electric vehicle manufacturers in America — currently qualifies for: a $7,500 federal tax credit for new EVs, the $4,000 credit for used EVs, and a $1,000 credit for Level 2 charger installation. The bill would also impose a $250 yearly federal registration fee for EV owners only.
If the bill is passed as currently written, Tesla’s $11.4 billion in regulatory credits wouldexpire at the end of 2025.Those credits contributed to Tesla’s profitability in the first quarterthis year.
Axios first reported some of the recent tension points between Musk and White House aides.
The White House allies urged a more critical look at Musk and Tesla’s claims about the megabill.
“When businessmen criticize legislation, journalists don’t take them at their word, they look at how the legislation would impact their business interests,” said a Republican close to the White House. “They should be doing that in this case.”
Musk’s broadsides against the bill angered the White House, which came amid a critical effort this week to line up support for the package in the Senate.
At a Tuesday briefing, press secretary Karoline Leavitt downplayed the criticism, saying Trump “already knows where Elon Musk stood on this bill.”
But privately, aides cast the attack as an attempt at retaliation after Musk failed to convince Republicans to preserve an electric vehicle tax credit in the megabill that would benefit Tesla, said one person familiar with the situation who was granted anonymity to describe internal thinking.
The billionaire had also recently suffered a setback in a separate attempt to further enrich his businesses, after the administration rejected his push for the Federal Aviation Administration to incorporate his Starlink satellites into the nation’s air traffic control system.
Further heightening tensions, the person familiar said, was that Musk’s departure from the White House came despite his efforts to convince aides to let him to stay — even though he had hit his mandated 130-day limit as a special government employee.
Though Musk’s latest tweets came as a surprise — landing for maximum impact in the middle of Leavitt’s briefing and Senate Republicans’ group lunch — the broader scorched-earth exit was seen by many Trump advisers and allies as an inevitability, said a second person familiar with the situation. The only question, the person said, was how quickly it’d happen and what would trigger the falling-out.
“These days were always coming,” said the second person. “His departure is going as well as can be hoped.”
