Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk expressed disappointment with President Donald Trump‘s massive spending package, saying that the legislation “undermines the work” that the Department of Government Efficiency team is doing. The comments come as bond markets react sharply to fiscal concerns surrounding the $3.8 trillion bill.
What Happened: “I was disappointed to see the massive spending bill frankly, which increases the budget deficit, not just decrease it and undermines the work that the DOGE team is doing,” Musk told CBS News in a short interview clip published on Tuesday.
Musk added his philosophy on legislation: “A bill can be big or it can be beautiful but I don’t know if it could be both.”
The criticism highlights tension between Musk’s deficit-reduction mandate at DOGE and Trump’s expansive tax-and-spending package, which the House narrowly passed 215-214 last week. The Congressional Budget Office estimates the legislation could add $2.3 trillion to $5.7 trillion to federal debt by 2034.
Why It Matters: Bond markets have reacted negatively to the fiscal implications. The yield surge reflects investor concerns about the government’s mounting $36.2 trillion debt load and ability to service obligations.
Several Republican senators have threatened to block the legislation due to concerns about the deficit. Sen. Ron Johnson (R-Wis.) warned that GOP resistance could halt the bill unless significant spending cuts are made. The Senate must approve the package before the July 4 recess.
Treasury Secretary Scott Bessent maintains the economy can “grow its way out of debt” through accelerated GDP growth. ARK Invest‘s Cathie Wood endorsed the approach as “Reaganomics on steroids.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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