The relationship between former political allies, U.S. President Donald Trump and Tesla Chief Executive Officer (CEO) Elon Musk, is heading toward another disaster.
The war of words between the two began earlier last month when Trump referred to a tax cut bill as 'One Big Beautiful Bill Act (OBBBA),' and Musk criticized it as 'disgusting and hateful.' The conflict intensified after Trump responded by saying, 'Elon is insane.'
Musk retreated slightly by deleting parts of a post he shared on X on the 11th of last month, saying, 'I regret some of the posts I made about the president last week.' In response, Trump said, 'It was very nice that Musk regretted it,' leading to speculation about a possible reconciliation between the two.
However, on the 30th (local time), Musk wrote on his social media X (formerly Twitter), 'If this nonsensical expenditure bill passes, the America Party will be founded the very next day,' adding, 'To have a true voice, we need alternatives beyond the Democratic and Republican parties.'
At the same time, he sent a clear threat to Republican lawmakers who would vote in favor of the new tax cut bill.
He warned, 'All lawmakers who vote for the largest debt-increasing bill in history after campaigning to reduce government expenditure should be ashamed,' and stated that 'those lawmakers will lose in the primary elections next year by any means necessary.'
CNN described this as 'the most concrete and powerful political threat Musk has made since leaving his advisory role at the White House.'
Musk has been a major donor, pouring about $290 million (approximately 400 billion won) into Trump and the Republican party in the last year's elections.
Considering his vast financial resources and over 100 million followers on X, a campaign to defeat a specific candidate could have significant repercussions. The House, which holds elections every two years, is particularly sensitive to the threat of defeat campaigns led by major donors.
In the early days of the Trump administration, Musk led the Department of Government Efficiency (DOGE), which aimed to reduce wasteful federal government budgets.
Musk proposed several reform plans to ensure fiscal soundness, but they repeatedly failed to pass through Congress. Ultimately, he left the White House in May, leaving behind conflicts with Trump.
Musk emphasized that the 'One Big Beautiful Bill' undermines the efforts for fiscal soundness he pushed for at DOGE. He also claimed that the bill favors past industries like coal while reducing support for future industries such as electric vehicle subsidies.
While clarifying that he does not oppose the omission of electric vehicle subsidies from the bill, Musk did not hide his complaints that 'this bill will cause severe harm to future industries.'
The Republican party is working tirelessly to pass this bill in the Senate by the 4th, which is Independence Day in the U.S.
The Congressional Budget Office (CBO) stated that if the bill presented in the Senate passes, the U.S. budget deficit will increase by $3.3 trillion (approximately 4,500 trillion won) over the next decade.
Musk denounced the bill as turning the U.S. into 'debt slavery,' saying on the 30th, 'This crazy expenditure bill shows that we live in a single-party state, aptly named the 'Porky Pig Party.' Now is the time for a new party that truly cares about the people.'
However, it remains to be seen whether Musk's anger will actually lead to the establishment of the America Party.
Political experts predict that rather than founding a new party, Musk is more likely to use his vast financial resources and media influence as a 'pressure card' to push the Republican party's policy direction in his favor.
At the same time, it is anticipated that the bill will significantly impact future businesses, including Tesla, prompting Musk, who had previously declared his intention to step back from the political spotlight, to re-emerge.
Once regarded as Trump's 'first buddy' and closest ally, Musk's recent clash with Trump has led to a more than 7% drop in Tesla's share price over the past month. During the same period, the Nasdaq rose by 6%. On the 30th, Tesla's shares fell by 2% and were down by over 2% after market close.
Concerns have spread that if Trump removes policies such as subsidies that benefit Musk's companies out of revenge, related corporations might suffer severe setbacks.
Earlier, JPMorgan forecasted that if Trump proceeds with the plan to abolish tax credits for electric vehicles, Tesla's operating profit could decrease by about $1.2 billion (approximately 1.62 trillion won) annually.