Elon Musk, the CEO of Tesla and SpaceX, voiced strong opposition to President Donald Trump's recent spending bill during a press conference prior to a SpaceX Starship launch. Musk's critique centered on the $3.8 trillion bill, which he believes not only undermines the initiatives his Department of Government Efficiency (DOGE) team has been working on but also exacerbates the United States' budget deficit.
The tech billionaire's comments were made to CBS, where he shared his disappointment with the legislation, emphasizing the negative impact it has on federal budget management. According to Musk, the DOGE team, which he has been leading, is unfairly becoming a scapegoat for unrelated issues, a sentiment he echoed to the Washington Post by saying, "Something bad would happen anywhere, and we would get blamed for it even if we had nothing to do with it."
Elon Musk's involvement in politics intensified after he played a key role in Trump's 2024 election victory, earning the moniker "First Buddy" within the White House thanks to his significant financial support and public endorsements. His close relationship with the president and his aggressive push for reducing government spending through job cuts have created tension among political figures and federal employees.
In the wake of the spending bill's passage, violent protests have erupted, targeting Musk's businesses. Tesla showrooms have been the scenes of violent demonstrations, resulting in a drop in Tesla's stock price and speculation about Musk's future as CEO of the electric car company. Addressing the civil unrest, Musk expressed confusion over the burning of Teslas and the implications for his companies.
Musk's political engagement has come at a cost to his businesses, something he acknowledged in a candid interview with ARS Technica where he admitted to possibly over-allocating his time to government affairs. Recently, he has attempted to rebalance his time, reducing his involvement in politics to focus more on his companies.
The spending bill, dubbed by Trump as his "Big, Beautiful Bill," is set to add approximately $3.8 trillion to the national debt, which currently stands at a staggering $36 trillion. The bill's impact on the national debt has raised investor concerns, as evidenced by last week's decline in the bond market following its approval in the House.
Trump's legislation includes an array of policy measures, from tax cuts to immigration reforms, and features spending increases traditionally opposed by Republicans. It proposes raising the debt ceiling by over $4 trillion for two years and outlines around $5 trillion in tax cuts, partially offset by the repeal of clean energy tax credits from the Biden administration.
Several of Trump's campaign promises are reflected in temporary provisions of the bill, such as tax breaks for various financial activities and an increased standard deduction for seniors, all set to expire at the end of 2028. The legislation also calls for significant Medicaid spending cuts and introduces "community engagement requirements" for certain groups, effective from January 2029.
The passage of this controversial spending bill has clearly struck a chord with Musk, who has become an influential yet divisive figure in both the business world and the political arena. His comments reflect not just his personal stance but also the broader concerns about fiscal responsibility and government efficiency.
