Elon Musk’s departure from the Trump administration in May 2025 was primarily triggered by his opposition to the “One Big Beautiful Bill Act,” a comprehensive tax and spending proposal endorsed by President Trump. Musk criticized the bill for its fiscal irresponsibility, particularly its projected $2.4 trillion deficit increase over a decade and the elimination of clean energy credits that adversely affected his electric vehicle business .
The fallout escalated into a public feud, with Musk expressing his disapproval on social media and suggesting Trump’s impeachment. In response, Trump labeled Musk as “crazy” and accused him of using political influence for personal gain, even threatening to terminate government contracts with Musk’s companies, including SpaceX and Starlink . This rift led to a significant drop in Tesla’s stock value, erasing over $150 billion in market capitalization .
This was not the first time Musk distanced himself from Trump’s administration. In 2017, Musk resigned from two of Trump’s business advisory councils after the president announced the U.S. would withdraw from the Paris climate agreement. Musk stated at the time, “Climate change is real. Leaving Paris is not good for America or the world” .
These instances highlight Musk’s willingness to sever ties with political leadership when policy decisions conflict with his principles, particularly concerning environmental issues and fiscal responsibility.