In a stunning turn of events, the once-strategic alliance between President Donald Trump and tech billionaire Elon Musk has devolved into a full-blown political and personal war, with consequences rippling from Wall Street to Washington, and even outer space.
Just a week ago, Trump and Musk stood side-by-side in the Oval Office, celebrating Musk’s departure from his temporary post as a government advisor on budget efficiency. Today, that image has all but vanished as the two titans trade public blows in a feud that threatens U.S. legislation, national aerospace programs, and Musk’s own business empire.
From Policy Rift to Personal Vendetta
The feud ignited after Musk publicly attacked Trump’s flagship tax and spending proposal, dubbed the “One Big Beautiful Bill,” calling it “a big, ugly abomination.” Musk has since used his platform, X (formerly Twitter), to lobby against the bill and promote a new centrist political movement. A pinned poll on his profile asking if the U.S. needs a third party has already garnered over 2 million votes, with 82% saying yes.
Trump responded by accusing Musk of betrayal and “going CRAZY,” asserting that Musk was dismissed from his advisory role rather than stepping down voluntarily. In a heated post on Truth Social, Trump even threatened to cancel federal contracts with Musk’s companies, “The easiest way to save money in our Budget, Billions and Billions, is to terminate Elon’s governmental subsidies and contracts.”
Accusations and Retaliation
Musk escalated the feud dramatically by posting unverified claims suggesting Trump appears in unreleased government files related to the late sex offender Jeffrey Epstein, allegations that Musk provided no evidence for. The FBI refused to comment, and the White House called the post “an unfortunate episode from Elon.”
Trump retaliated by revoking the nomination of Musk’s close friend Jared Isaacman to head NASA, citing Isaacman’s past donations to Democratic candidates. Sources say this decision further infuriated Musk, who then declared that SpaceX would begin decommissioning its Dragon spacecraft, a critical component of NASA’s missions to the International Space Station.
NASA responded firmly, “We will continue to execute upon the president’s vision for the future of space,” signaling intent to work around Musk if necessary.
Financial Fallout
Tesla’s stock has taken a severe hit amid the chaos, plummeting more than 15% in a single day, the largest drop since 2020, wiping out over $130 billion in market value. The EV giant’s valuation has now fallen below the $1 trillion threshold, settling around $916 billion.
Investors, including former Musk allies, have voiced frustration. “Can someone please take the phone away from him!” wrote Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, whose firm recently trimmed its Tesla holdings.
Meanwhile, Musk’s ambitions for a driverless Tesla robotaxi launch in Austin hang in the balance. Analysts say his political distractions could jeopardize Tesla’s future as rivals like Waymo surge ahead.
Political Shockwaves
Musk’s pivot to opposing Trump has scrambled political allegiances. Some Democrats, once wary of Musk’s flirtation with right-wing politics, are watching from the sidelines. “It’s a zero-sum game,” said Democratic strategist Liam Kerr. “Anything Musk does to damage Trump helps Democrats.”
Yet most Democrats remain cautious. While Musk’s support could fracture Republican unity on Capitol Hill, few in the opposition party are ready to embrace him.
A Collision of Egos and Empires
The clash between the world’s richest man and the world’s most powerful elected official is as bizarre as it is consequential. Trump still commands the full machinery of government, and Musk controls companies that underpin key sectors of national infrastructure, from defense to space.
“Trump has 3.5 years left as president,” Musk warned on X, “but I will be around for 40+ years…”
This may be personal, but it is also profoundly political and economic. With threats flying and real consequences mounting, the world is watching to see just how far each man is willing to go, and who will pay the highest price.
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