Explained: Why Elon Musk Is Breaking with Trump and Calling for a New Political Party

Amid the ongoing feud between Elon Musk and Donald Trump, following his fall out from US government, tech billionaire has thrust himself into the political spotlight by suggesting the creation of a new political party. The tech billionaire posted a poll on X, asking if it’s time to start a party that truly represents the “80% in the middle.” With over 400,000 people voting so far, more than 83% support the idea — showing Musk’s growing influence in American politics.

In response to a social media post by a prominent conservative suggesting Republicans may need to choose between him and Trump, Elon Musk replied, “Just some food for thought as they consider this: Trump has 3.5 years left as President — I’ll be around for 40+ more.” Musk also criticized Trump for being ungrateful, pointing out that he had spent hundreds of millions of dollars to support Trump’s re-election.

“It is time to create a new political party in America that actually represents the 80% in the middle,” Elon Musk asked as he scorched Donald Trump over the Big, Beautiful Bill.

About Trump’s Big Beautiful Bill

Trump’s “Big Beautiful Bill,” officially called the One Big Beautiful Bill Act, is a major piece of legislation pushed by former President Donald Trump during his second term. It’s a massive tax and spending package that aims to achieve several of Trump’s key priorities.

Elon Musk and Donald Trump were once close allies. Musk spent at least $288 million supporting Trump’s 2024 campaign and worked in Trump’s administration as a special government employee leading the Department of Government Efficiency (DOGE). DOGE’s job was to cut government waste and reduce spending. However, the “Big Beautiful Bill” caused a major rift between them.

Why was Musk Upset?

Musk’s DOGE team worked hard to cut government spending (they claimed to save $180 billion, though this is debated). The bill, however, increases the deficit by trillions, which Musk said “undermines” his work. He called it a “disgusting abomination” and a “massive, outrageous, pork-filled” bill, meaning it’s full of unnecessary spending.

The bill removes tax credits of up to $7,500 for people buying new EVs and $4,000 for used ones. Since Musk’s company, Tesla, makes EVs, this could hurt Tesla’s sales. Analysts say this could cost Tesla $1.2 billion and make it harder for them to compete, especially since Tesla’s sales were already struggling. Musk was frustrated because he lobbied to keep these credits but failed.

Personal and Business Conflicts:

• Starlink Rejection: Musk wanted the Federal Aviation Administration (FAA) to use his Starlink satellite system for air traffic control, but the Trump administration said no, citing conflicts of interest and technical issues.
• NASA Nomination: Trump withdrew the nomination of Jared Isaacman, a Musk ally, for NASA administrator. Musk saw this as a betrayal, especially since Isaacman’s role could have helped Musk’s SpaceX company.
• Time Limit: Musk’s role as a special government employee was limited to 130 days, and he wanted to stay longer, but the White House didn’t allow it. This added to his frustration.

Public Backlash

Additionally, Elon Musk faced significant public backlash for his role in the Department of Government Efficiency (DOGE), which aimed to cut government spending and led to federal worker layoffs and program reductions. Protests erupted outside Tesla’s offices, with signs like

“Musk is no savior” spotted in cities like Austin. Boycotts hit Tesla’s sales, with reports of a 12% drop in U.S. deliveries in Q1 2025, partly due to customers rejecting Musk’s political ties. He also received death threats, prompting increased security at Tesla and SpaceX facilities. The backlash tarnished Tesla’s brand, especially among progressive buyers, making Musk question the value of his government role.

Posts on X amplified the criticism, with hashtags like #BoycottTesla trending. Feeling his efforts to streamline government were underappreciated and harmful to his businesses, Musk grew frustrated, believing the personal and financial costs outweighed the benefits of his DOGE involvement.

The Public Fight

• Musk’s Criticism: Musk started criticizing the bill publicly in late May 2025, saying he was “disappointed” on CBS News. By June 3, he got much harsher, posting on X that the bill was a “disgusting abomination” and urging people to call Congress to “kill the bill.” He even threatened to support challengers to Republicans who backed it in the 2026 elections.
• Trump’s Response: Trump said he was “very disappointed” with Musk, claiming Musk only got upset when the EV tax credits were cut. Trump insisted Musk knew about the bill’s details and had “no problem” with it before. He also called the bill “incredible” and the “biggest tax cut in history.”
• Musk Fights Back: Musk denied seeing the bill before it passed, saying it was rushed through Congress “in the dead of night.” He also claimed Trump wouldn’t have won the 2024 election without his support, saying, “Without me, Trump would have lost.” This was a bold jab at Trump.
• Trump’s Threat: Trump hinted at canceling government contracts with Musk’s companies (like SpaceX), which rely on government deals. Musk responded by saying he’d start “decommissioning” SpaceX’s Dragon spacecraft, which NASA uses for space missions.

What’s Happening Now?

The feud between Trump and Musk is out in the open, and it’s causing ripples in politics and beyond. Considering the situation, Donald Trump’s aides scheduled a call between the U.S. president and Elon Musk for Friday after a huge public spat that saw threats fly over government contracts and included the world’s richest man suggesting Trump should be impeached.

A White House official said the two men would speak on Friday. The official did not give a time for the call, which could ease the feuding after an extraordinary day of hostilities – largely conducted over social media – that marked a stark end to a close alliance.