TSL falls 5%! Trump's "Great America Plan" passed by the Senate, Musk criticizes again: Encourages presidential abuse of power

Musk and Trump are at it again, arguing over the "One Big Beautiful Bill" (OBBBA). Musk claims the bill essentially encourages presidential abuse of power, while Trump retorts that Musk has already received many government subsidies, and now that the subsidies are gone, he is starting to bite back. (Background: Musk shouted: If Trump's "One Big Beautiful Bill" passes, the next day he will establish the "America Party.") (Context: Musk and Trump arguing, "Bezos becomes the biggest winner," Blue Origin quietly squeezes SpaceX's business.) The U.S. Senate passed Trump's "One Big Beautiful Bill" (OBBBA) last night (1) by a vote of 51 to 50. This bill is a key legislative agenda for Trump's second term, covering tax relief, border security funding, increased defense spending, and cuts to social welfare programs such as Medicaid and SNAP. The bill has now been sent back to the House for final review, and the House must pass the Senate's amended version by July 4 to meet Trump's signing deadline. The voting process was tense and fierce. It is understood that this voting process experienced over 24 hours of a "voting marathon," involving heated debates and negotiations over multiple amendments, and ultimately, the Senate passed the bill with a narrow margin of 51 to 50, with Vice President JD Vance casting the crucial tie-breaking vote. Additionally, three Republican senators: Susan Collins (Maine), Thom Tillis (North Carolina), and Rand Paul (Kentucky) voted against it along with all Democratic senators, but failed to stop the bill's passage. Musk criticized: The bill encourages Trump to abuse power. Notably, this bill has again sparked Musk's discontent. Musk posted on social platform X, criticizing that the bill will encourage Trump's abuse of power: "The cancellation of funding to enforce federal contempt of court orders is the real core of this spending bill. It ostensibly targets the deportation of illegal immigrants, but clearly opens up many other possibilities for presidential abuse of power. Should this be allowed?" The bill extends the 2017 tax cuts and cuts several social welfare expenditures, and the $7,500 electric vehicle credit has also been removed. For Tesla, which heavily relies on incentives to drive sales, this is akin to choking off its oxygen supply. Previously, Musk had posted on X multiple times, harshly criticizing the bill as "odious," "completely insane and destructive," warning that U.S. manufacturing could lose millions of jobs. Trump: Crying when the bottle is taken away? In response, Trump recently mocked Musk on social media for "having received the most subsidies in history, and now getting upset when the subsidies decrease," and publicly stated: "You have received more subsidies than anyone else. Crying when the bottle is taken away? Then just close the door and pack up back to South Africa." Additionally, Trump also stated last night that the U.S. Government Efficiency Office (DOGE) should keep an eye on Musk, which would save the government a lot of money, implying possible renewed attacks on Musk's industries in government collaboration and support. Tesla shares dropped 5%. Affected by this news, according to Google Finance data, Tesla's stock briefly fell below $300 during the U.S. stock market session last night (1), but later recovered slightly, reporting $301.41, though the intraday decline was still 5.11%. Analysis: The current fiscal path will lead to U.S. bankruptcy. Regarding the argument between Trump and Musk, The Kobeissi Letter also posted on platform X, pointing out that on the current fiscal path, bankruptcy is a basic expectation: The ironic part about the Elon Musk/President Trump situation: Eliminating the U.S. deficit would actually accomplish ALL of President Trump's economic goals, at once. First, the elimination of deficit spending would allow treasury yields to drop, as multi-trillion dollar Treasury issuance would decrease. This would also reduce inflation, allowing the Federal Reserve to cut interest rates and calm the bond market. In fact, the bond market was the reason for the shift in the trade war in April, as the 10-year Treasury yield soared above 4.60%. To some extent, reducing deficit spending would allow Trump to impose more tariff pressure to narrow the trade deficit. Furthermore, although the trade war is viewed as "short-term pain for long-term gain," the true subject of that phrase is deficit spending cuts. As Elon Musk continues to speak out about the debt crisis, more and more Americans are beginning to pay attention to this issue. Since the stimulus plans of the pandemic era in 2020 began, our position has been clear: on our current fiscal path, bankruptcy is a basic expectation. The ironic part about the Elon Musk/President Trump situation: Eliminating the US deficit would actually accomplish ALL of President Trump's economic goals, at once. First, the elimination of deficit spending would allow treasury yields to drop as multi-trillion dollar Treasury… — The Kobeissi Letter (@KobeissiLetter) July 1, 2025 Related reports: Musk's DOGE genius engineer Edward Coristine leaves, Trump's fiscal reform in vain? Why did Musk apologize to Trump? WSJ: Vice President Vance mediates, Tesla stock rebounds. Musk quietly deletes Trump-related pedophilia posts, Trump: Dare to support the Democrats, let him pay a painful price. <Tesla plummets 5%! Trump's "One Big Beautiful Bill" passed the Senate, Musk again scolds: encourages presidential abuse of power.> This article was first published on BlockTempo, the most influential blockchain news media.