Trump-Musk Alliance Explodes
Tech mogul and president trade personal attacks over spending bill as their unprecedented partnership crumbles in spectacular public fashion
The extraordinary political alliance between President Donald Trump and billionaire Elon Musk collapsed spectacularly on Thursday, June 5, 2025, erupting into a bitter public feud that wiped out $150 billion from Tesla's market value and sent shockwaves through American politics.
What began as policy disagreements over Trump's massive tax and spending legislation escalated into personal attacks, with Musk suggesting the president should be impeached and Trump threatening to terminate billions in government contracts with Musk's companies.
The dramatic fallout between the world's most powerful leader and its richest individual represents one of the most stunning political breakups in recent memory, ending a partnership that had been central to Trump's second-term agenda and Musk's unprecedented influence in Washington.
The Spark That Ignited the Firestorm
The relationship began deteriorating in late May when Musk, serving as head of the Department of Government Efficiency (DOGE), publicly criticized Trump's signature "big, beautiful bill" in a CBS News interview on May 28. Musk expressed disappointment with the planned legislation, calling it fiscally irresponsible despite Trump's enthusiasm for the tax cuts and spending measures it contained.
The tension simmered for days as Musk departed his government role on May 29, with Trump hosting a farewell ceremony and insisting, "Elon is really not leaving". However, by June 2, Musk had escalated his criticism, labeling the legislation a "disgusting abomination" on his social media platform X and urging Americans to pressure their representatives to "kill the bill".
According to White House officials who spoke to Reuters, Trump initially restrained himself from publicly confronting Musk, hoping to preserve the billionaire's political and financial support ahead of the 2026 midterm elections. However, by Thursday afternoon, Trump's patience had reached its breaking point.
Public Battle Erupts in the Oval Office
The feud erupted into public view when Trump, meeting with German Chancellor Olaf Scholz in the Oval Office, expressed his disappointment with his former ally. "Look, Elon and I had a great relationship. I don't know if we will anymore," Trump told reporters, according to multiple news outlets. "I'm very disappointed because Elon knew the inner workings of this bill better than almost anybody sitting here. He knew everything about it. He had no problem with it."
Trump suggested that Musk's opposition stemmed from personal business interests, specifically the bill's elimination of electric vehicle tax credits that benefit Tesla. "Elon is upset because we took out the EV mandate, which was a lot of money for electric vehicles," Trump stated.
Musk swiftly responded on X, denying Trump's characterization of events. "False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!" Musk posted.
Escalation Into Personal Territory
What followed was an unprecedented exchange of personal attacks between the two figures on their respective social media platforms. Trump posted on Truth Social that Musk was "wearing thin" and claimed he had "asked him to leave" his government position. In a particularly pointed message, Trump wrote: "The easiest way to save money in our Budget, saving Billions and Billions of Dollars, is to eliminate Elon's Government Subsidies and Contracts!"
Musk retaliated with increasingly provocative statements. "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate," he posted, adding "Such ingratitude". The Tesla CEO, who had invested nearly $300 million in Trump's campaign, directly challenged the president's narrative of the election.
The confrontation reached its most explosive moment when Musk made unsubstantiated claims about Trump appearing in documents related to convicted sex trafficker Jeffrey Epstein. "That is the real reason they have not been made public," Musk alleged without providing evidence. The White House quickly dismissed these accusations.
Most dramatically, Musk appeared to endorse calls for Trump's impeachment, responding "Yes" to a post from Ian Miles Cheong that suggested "Trump should be impeached and JD Vance should replace him".
Market Meltdown and Financial Fallout
The public spat triggered immediate and severe financial consequences. Tesla's stock plummeted over 14% on Thursday, erasing approximately $150 billion in market capitalization in what marked the company's worst single-day performance in years. Musk's personal wealth declined by $34 billion according to the Bloomberg Billionaires Index.
"It's a bit of a head-scratcher that Musk is going so rogue-negative towards Trump so quickly. It's a potentially very hazardous path," Dan Ives, a senior research analyst at Wedbush Securities and longtime Tesla supporter, told CNN. Ives described the situation as creating "massive pressure on Tesla shares with fears that Trump will turn from friend to foe".
Short-sellers profited nearly $4 billion from Tesla's decline, making it the second-largest single-day profit on record, according to Ortex data. The stock partially recovered on Friday, climbing approximately 5-6% in early trading as tensions appeared to cool, though it remained down about 13% for the week.
Government Contracts and Business Implications at Risk
The feud poses significant threats to Musk's business empire, which has deep ties to federal agencies. SpaceX, Musk's aerospace company, holds contracts worth billions with NASA and the Pentagon for satellite launches, astronaut transportation, and lunar exploration missions. According to a Washington Post analysis cited by Wired, Musk's businesses have received at least $38 billion in government contracts, loans, subsidies, and tax incentives since 2003.
Trump's threat to terminate government contracts could have devastating consequences for SpaceX, which serves as the only American vehicle capable of transporting astronauts to the International Space Station through its Dragon spacecraft. In retaliation, Musk initially announced that SpaceX would begin decommissioning Dragon "immediately," though he later appeared to retract this threat.
The implications extend beyond SpaceX to Tesla's autonomous vehicle ambitions. The company's robotaxi program requires federal regulatory approval, and Trump could potentially pressure agencies to deny necessary permits or renew safety investigations into Tesla's full self-driving software. "If full self-driving were to be invalidated, that would be a huge hit to Tesla stock and to Musk," Gordon Johnson, CEO of GLJ Research, told ABC News
Political Ramifications for Republicans
The Musk-Trump split has created significant complications for Congressional Republicans, who find themselves caught between supporting the president's agenda and heeding Musk's calls for fiscal restraint. With Republicans holding only a slim majority in the House, Musk's opposition to the spending bill could potentially derail Trump's legislative priorities.
House Speaker Mike Johnson issued a detailed rebuttal to Musk's criticisms, while Senate Majority Leader John Thune sought to downplay Musk's influence over his caucus. However, some Republicans, including Freedom Caucus Chairman Rep. Andy Harris of Maryland, sided with Musk's position on the legislation.
The fallout raises concerns about Republican unity heading into the 2026 midterm elections. Musk's vast social media influence on X and his potential to mobilize political resources could pose challenges for Trump-backed candidates. In a particularly ominous warning for Republicans, Musk posted: "Trump has 3.5 years left as President, but I will be around for 40+ years".
Attempts at Damage Control
According to Politico, White House aides initially attempted to arrange a phone call between Trump and Musk for Friday to broker peace between the two men. However, these reconciliation efforts appeared to stall, with a White House official later stating that Trump had no plans for such a call.
Trump's tone seemed to soften slightly in some later social media posts, writing on Truth Social: "I don't mind Elon turning against me, but he should have done so months ago. This is one of the Greatest Bills ever presented to Congress". However, reports emerged that the president was considering selling his Tesla vehicle, which he had purchased earlier in the year as a show of support for Musk.
When asked by ABC News about reports of a scheduled phone call, Trump reportedly responded: "You mean the man who has lost his mind?", suggesting the relationship remained deeply strained.
Historical Context of a Volatile Alliance
The Trump-Musk relationship has been characterized by dramatic swings throughout the years. Initially, Musk was critical of Trump during his first term, resigning from the White House advisory councils in 2017 over disagreements on climate policy. In 2022, Trump called Musk a "bullshit artist," while Musk suggested Trump was "too old" to run for office.
The dynamic shifted dramatically following the assassination attempt on Trump in Butler, Pennsylvania, in July 2024. Musk immediately endorsed Trump, posting "I fully endorse President Trump and hope for his rapid recovery" within minutes of the incident. This marked the beginning of Musk's transformation into one of Trump's most prominent supporters and financial backers.
During the 2024 campaign, Musk contributed approximately $277 million to Trump and other Republican candidates, making him the most prominent Republican political donor. Following Trump's victory, the president appointed Musk to lead the Department of Government Efficiency, giving the billionaire unprecedented access to government operations.
In February 2025, Musk had publicly declared his affection for Trump, posting: "I love @realDonaldTrump as much as a straight man can love another man. The relationship appeared to peak when Trump climbed into a Tesla on the White House South Lawn in March, calling the car "beautiful" and announcing he would "buy a brand new Tesla" as a show of support.
The NASA Appointment Controversy
A significant factor in the relationship's deterioration was Trump's decision to withdraw his nomination of Jared Isaacman, Musk's chosen candidate for NASA administrator. Isaacman, a longtime Musk associate and advocate for Mars missions, faced confirmation challenges after revelations about his past donations to Democratic campaigns.
On May 31, Trump announced on Truth Social: "After thorough review of prior associations, I am withdrawing the nomination of Jared Isaacman to head NASA". At the White House on Thursday, Trump remarked that this decision had displeased Musk, noting: "We have certain privileges, and one of the privileges is we don't have to appoint a Democrat".
Expert Analysis and Market Response
Financial analysts expressed concern about the long-term implications of the feud for both Tesla and the broader market. "You could end up alienating both political sides within just a few months. For a company that sells to consumers, that's the last thing you want," Dan Ives warned.
The confrontation underscored the risks associated with CEO political involvement for publicly traded companies. Tesla had already faced protests and sales challenges, as Musk's political activities alienated the company's traditional customer base, which was predominantly coastal Democrats. The feud with Trump now threatens to alienate potential conservative buyers as well.
"It may be overly optimistic to assume their relationship will revert to its previous state, but if cooler minds prevail and the tensions diminish, it would certainly be a significant enhancement for Tesla," commented Matthew Britzman, a Tesla analyst at Hargreaves Lansdown.
Global Implications and Future Outlook
The Musk-Trump split carries implications beyond American politics and markets. SpaceX's role in supporting Ukraine through its Starlink internet service and its partnerships with international space agencies could be affected by reduced government support. The company's ambitious Mars exploration goals, championed by both Musk and Trump in his inaugural address, now face an uncertain future.
Both figures face significant challenges. For Trump, losing Musk's support jeopardizes his influence among tech donors, his social media reach, and his appeal to younger male voters, who were crucial to his electoral success. The president's ability to pass his signature legislation through Congress may also be compromised without Musk's backing.
For Musk, the consequences could be even more severe. The rift invites increased regulatory scrutiny of his business practices and potentially jeopardizes billions in government contracts. His influence within conservative political circles, largely built through his alliance with Trump, may now be in jeopardy.
Some political observers noted that both men are known for their combative styles and history of public feuds, making a complete reconciliation uncertain. However, their mutual interests in space exploration, government efficiency, and economic growth could potentially provide a foundation for future cooperation.
An Unprecedented Political Rupture
The spectacular breakdown of the Trump-Musk alliance represents one of the most dramatic political divorces in modern American history. What began as policy disagreements over fiscal responsibility has evolved into a personal vendetta that threatens to reshape both the political landscape and the business fortunes of the world's richest individual.
As Tesla's stock volatility demonstrates, the financial markets remain highly sensitive to the relationship between these two influential figures. With Trump's legislative agenda hanging in the balance and Musk's business empire facing potential government retaliation, the ultimate resolution of this feud could have far-reaching consequences for American politics, technological innovation, and space exploration.
The coming days will reveal whether cooler heads can prevail or if this marks the permanent end of one of the most unlikely and consequential partnerships in contemporary politics. For now, the world watches as two of its most powerful individuals wage their battle in the most public forum possible, with billions of dollars and the future of American governance hanging in the balance.