Name: The Big, Beautiful Breakup
Uploaded: 2025-06-08T14:00:00Z
Duration: 6 min 27 s
Description: Journal Editorial Report: What’s at stake in the Trump-Musk feud?

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Journal Editorial Report: What’s at stake in the Trump-Musk feud? Photo: Roberto schmidt/AFP/Getty Images

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Journal Editorial Report: What’s at stake in the Trump-Musk feud?

The Big, Beautiful Breakup

Welcome to "The Journal Editorial Report." I'm Paul Gigot. Republican leaders say it's full speed ahead on their big, beautiful budget bill following a public falling out this week between President Trump and Elon Musk. The Tesla CEO took to Twitter to blast the house passed legislation as an abomination and called on lawmakers to kill the bill, after the Congressional Budget office released an estimate that said it would add $2.4 trillion to the federal deficit over 10 years. A number that Republicans and the Trump administration dispute. After meeting with the president on Wednesday, Senate majority leader, John Thune, said that Congress is committed to sending a bill to President Trump by the 4th of July.

Failure is not an option and we didn't intend to deliver along with the president for the American people on the things that he committed to do and that we committed to do in terms of the agenda.

Joining the panel this week, "Wall Street Journal" columnists, Kim Strassel and Jason Riley, and Editorial Board Member, Mene Ukueberuwa. So Kim, let's get into this Musk Trump feud. What's at the root of it and I mean, what's going on here?

Well, and by the way, Paul, who would've thought this could happen, right? Two guys with pretty healthy egos, easily excitable, who love to escalate, what could possibly go wrong? Look, my own view is that Musk has had some concerns with this bill for a long time. Probably also some issues with the Trump presidency, but he decided to be a loyal soldier. All of that kind of came to an end, or he was released as it were when he officially left his DOGE job and he now has decided to unleash the approximate cause is he says that the bill is way too expensive that Republicans haven't done enough to cut in it. By the way, I agree with that assessment, but this did not go down well, obviously with the president who thinks there are no flaws in his one big beautiful bill, and so we are off to the races.

Yeah, we sure are. Jason, is there anything else here? There's some speculation that the withdrawal of Jared Isaacman, who was nominated to run NASA and then had the nomination withdrawn. He was an ally of Musk may have been part of the problem, maybe part of the problem?

Yes. He was a big ally of Musk and it sounds like Musk thought he had some guarantees here in terms of Isaacman and it didn't play out. So that's one of the reasons it's been pointed to that could have triggered this. I do agree with Kim, though, that a lot of, I think Musk's problems with this bill are shared by some other senators and by some other people in Congress, particularly people like Rick Scott, Mike Lee have spoken out. Obviously, Rand Paul has some issues with the bill and I think this is constructive criticism. I also think that it's important that it's coming from Elon Musk, someone who has some credibility in MAGA world. He's a respected figure, and there maybe people out there saying, "Well, if Elon Musk is criticizing this, maybe the Senate should take a harder look at what's going on." And there are places this bill could be improved. Let's face it. There are some tax gimmicks in there with overtime and social security and car loans and things like that. I don't know that the Medicaid reforms go as far as they could go. So there is room for improvement and I think unbalanced Musk is doing a good thing in calling that out.

Wow, I mean now, I think that's probably the minority opinion up on Capitol Hill these days. But Mene, there's also, I think some self-interested motivation here by Musk, and that is that these Tesla subsidies that are in the, subsidies for EVs, not just for Tesla, but for all EVs, for car batteries, green subsidies are pretty extensive, and the house cuts them quite a bit. Now, Musk, the way it said, "Well, okay, keep them in the bill, I don't care." But that may be a motivation here too. And secondarily, could Musk kill this bill with his opposition?

Well, on the credits, I think it's fascinating to see how the way Elon Musk thinks about them has changed over the past few years. You'll remember in the Inflation Reduction Act, which created this $7,500 electric vehicle credit, Elon Musk came out and said he was opposed to it. And at that time, Tesla was leading the market so much that he really wanted to pull up the moat and stop his competitors from having access to these credits. By now, Tesla has a lot more competition and he feels like he needs those credits to be able to remain viable and so he is really wanting to defend those. But in terms of his own sway over the bill, I think that he's thinking back to March when he was able to kill a stopgap funding bill and get them to rewrite it to make deeper cuts, and he actually had a very big influence there. By now, this is a completely different topic. I think Republicans are very on board with this tax bill because they have to pass it. They know Trump is completely behind it in a way that he wasn't with that stopgap funding bill. And so Elon Musk is probably overestimating his own influence over Republicans in Congress.

Well, he's certainly concerned about those tax credits. Tesla's been losing market share, particularly in Europe, places like France and Spain and so forth, where people aren't buying fewer electric vehicles. They're just buying fewer Teslas. So he is concerned about that, but I also think he's looking at the sway he had over certain members of Congress in their elections in the past, and those congressmen remember that as well. Elon Musk spent a lot of money and wielded a lot of influence in the past election, and he's probably thinking I could do the same again.

Kim, who stands to lose the most if this feud continues?

Both sides do. I mean I think this is really unfortunate, Paul. One of the great things about having Elon Musk in this coalition and having him work on DOGE is it was a reminder of the creativity of the entrepreneurial class. You come in and look at things in an entirely different way, shake things up. It was sort of fun to watch that. That's the kind of healthy attitude Republicans could use more of in advising in government.

WSJ Opinion: The Big, Beautiful Breakup

From the award-winning opinion pages of The Wall Street Journal, the Journal Editorial Report sees columnists and members of the Journal Editorial Board debate the major economic, political and cultural issues of the day. 
From the policy debates to the political fights, each week get critical perspective and the analysis you need on developments from Washington.

WSJ Opinion: The Big, Beautiful Breakup

WSJ Opinion: Journal Editorial Report

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