The once formidable partnership between US President Donald Trump and billionaire entrepreneur Elon Musk has dramatically unravelled, culminating in a public feud that has sent shockwaves through both political and business circles. The two are now expected to speak privately, following days of escalating hostilities that played out across social media and the press.
The alliance, which began in July 2024 when Musk threw his full support behind Trump after an assassination attempt, had appeared unbreakable. Musk not only campaigned for Trump but also donated nearly $300 million to Republican efforts, and was appointed to head the newly created Department of Government Efficiency (DOGE), where he led aggressive cost-cutting reforms in the federal government. Trump, in turn, publicly praised Musk as one of the world’s greatest innovators.
How it all began
However, cracks began to show after Musk’s departure from his White House advisory role. The rift widened over Trump’s centrepiece “Big Beautiful Bill”—a sweeping tax and spending plan. Musk lambasted the legislation as a “disgusting abomination” that would balloon the national debt, warning it would undo the very reforms he had championed at DOGE. Trump responded by accusing Musk of turning against the bill only after leaving his government post, and suggested that Musk’s real grievance was the removal of electric vehicle tax credits—a move that could hurt Tesla’s bottom line.
The feud erupted into the open on Thursday. Trump, speaking from the Oval Office, threatened to terminate government contracts and subsidies for Musk’s companies, including Tesla and SpaceX, declaring this would save “billions and billions of dollars”. Tesla’s shares tumbled by more than 14 percent, wiping out around $150 billion in market value—the largest single-day loss in the company’s history.
Musk retaliated on his social media platform X, claiming Trump would not have won the 2024 election without his financial and strategic support. He even endorsed a post calling for Trump’s impeachment, a move considered highly unlikely given the Republican control of Congress. The exchanges grew increasingly personal, with Musk making unsubstantiated allegations about Trump’s connections to the infamous Epstein files, further inflaming the situation.
As the row intensified, Musk threatened to decommission SpaceX’s Dragon spacecraft, which currently serves as the only American vehicle capable of ferrying astronauts to the International Space Station—a move that could have serious implications for NASA missions. He later retracted this threat, signalling a possible willingness to de-escalate.
Private Conversation
Behind the scenes, White House aides scrambled to arrange a private conversation between the two men in an effort to contain the fallout. Trump, when asked about the planned call, downplayed the feud, saying, “It’s all fine. Everything is going exceptionally well; I’ve never been better,” and pointed to his strong poll numbers. However, in a separate interview, he referred to Musk as “a man who has lost his mind,” suggesting he was not particularly interested in speaking to him at the moment.
The public spectacle has raised concerns within the Republican Party. Analysts warn that a prolonged rift could jeopardise Republican prospects in the upcoming midterm elections, especially if Musk withdraws his substantial campaign funding or if Trump’s support wanes among tech donors in Silicon Valley. As one Republican strategist put it, “Elon was indeed a crucial part of the ground game this past election cycle. If he decides to abstain from the midterms, that concerns me”.
The Trump–Musk split has also triggered protests at Tesla locations and rattled investors, who are increasingly worried about Musk’s divided attention between his business and political ventures.
As both men prepare for their private discussion, the outcome remains uncertain. There are some signs of possible reconciliation, with Musk acknowledging a call for unity from influential investor Bill Ackman, saying, “You’re not wrong”. Yet, with both Trump and Musk known for their combative styles and unpredictable moves, observers are watching closely to see whether this high-stakes feud will be resolved or whether it marks the permanent end of one of America’s most consequential political alliances.
