EditTrump-Musk feud: a clash of egos with far-reaching implications
The richest man on earth posted: “Is it time to create a new political party in America?”
The once-cordial relationship between President Donald Trump and billionaire entrepreneur Elon Musk has imploded into a public spectacle, marked by threats, counterattacks, and profound consequences for their respective spheres of influence.
On Thursday, Trump vowed to terminate government contracts and subsidies for Musk’s companies, including Tesla and SpaceX, while Musk escalated the conflict by endorsing calls for Trump’s impeachment on X, his social media platform. This clash – between the world’s most powerful political figure and its wealthiest individual – stems from oversised egos and competing visions, unfolding as a high-stakes reality show with significant economic, political, and policy ramifications.
The catalyst: a fractured alliance
The feud erupted after Trump, in an Oval Office press conference, expressed disappointment in Musk, criticizing his opposition to a sweeping tax-cut and spending bill. Just six days earlier, the two had appeared together in the same setting, with Trump praising Musk’s role as head of the Department of Government Efficiency (DOGE).
Elon Musk’s DOGE legacy: bold cuts, unmet goals, and a question of loyalty
Musk, who spent nearly $300 million supporting Trump and other Republicans in the 2024 election, had been a visible and influential adviser, frequently seen at the White House and Capitol Hill. However, tensions had been simmering since Musk’s abrupt departure from DOGE the previous week, following clashes with cabinet members over proposed budget cuts.
The immediate trigger was Musk’s vocal campaign against Trump’s “big, beautiful bill,” which he labelled a “disgusting abomination” on his platform X, arguing it would balloon the $36.2 trillion national debt. The Congressional Budget Office (CBO) projects the bill would add $2.4 trillion to the debt over a decade, reduce revenues by $3.67 trillion, cut spending by $1.25 trillion, and leave 10.9 million more people uninsured due to changes in programs like Medicaid. Musk’s opposition, amplified by his 220 million followers on X, deepened a rift within the Republican Party, threatening the bill’s passage in the Senate.
Escalation and economic fallout
Trump’s response was swift and severe. On his own platform Truth Social, he threatened to eliminate subsidies and contracts for Musk’s companies, stating, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”
The market reaction was immediate: Tesla’s stock plummeted 14.3% on Thursday, erasing approximately $150 billion in market value – the largest single-day decline in the company’s history. SpaceX, a critical government contractor through its Dragon spacecraft – the only U.S. vehicle currently capable of ferrying astronauts to the International Space Station – faced potential disruption when Musk briefly announced plans to decommission Dragon, only to retract the statement hours later after calls for de-escalation.
Musk’s retorts were equally provocative. Claiming credit for Trump’s 2024 election victory, he wrote on X, “Without me, Trump would have lost the election,” and warned that Trump’s proposed tariffs could trigger a recession in 2025. In a striking escalation, Musk responded “Yes” to a post advocating Trump’s impeachment – an unlikely prospect given Republican majorities in both chambers of Congress. Later, in a possible olive branch, Musk agreed with hedge fund manager Bill Ackman’s call for reconciliation, writing, “You’re not wrong,” and accepted advice to “cool off” and reconsider decommissioning Dragon.
A clash of titans
The feud was inevitable, given the larger-than-life personalities involved. Both Trump and Musk are known for their combative styles, leveraging social media to amplify their grievances and rally their bases. Trump’s first term (2017–2021) was marked by high-profile fallouts with advisers like Steve Bannon and John Bolton, while Musk’s tenure at DOGE was characterised by bold but disruptive plans to slash $2 trillion from the federal budget – a goal that yielded only modest cuts (approximately 0.5% of total spending) while sparking protests at Tesla facilities and alienating investors concerned about his divided focus.
Their clash reflects deeper ideological and personal tensions. Musk, who positioned himself as a fiscal conservative, criticised the spending bill’s “mountain of disgusting pork,” though Trump countered that Musk’s real objection was the elimination of electric vehicle (EV) tax credits – a claim Musk dismissed, insisting he supported cutting EV subsidies if paired with broader spending reductions. The dispute also reveals a power struggle: Musk’s influence, bolstered by his wealth and online reach, allowed him to connect Trump to Silicon Valley and wealthy donors, but his departure from DOGE and public attacks signal a bid for independence from Trump’s orbit.
Political and economic ramifications
The feud carries significant consequences. For Trump, it marks the first major rift with a high-profile adviser and ally in his second term, potentially weakening his grip on the Republican Party as it navigates a divided Senate and the 2026 midterms. Musk’s campaign spending and online influence were pivotal in 2024, and a prolonged conflict could erode Republican support among tech-savvy voters and donors. His poll on X asking, “Is it time to create a new political party in America that actually represents the 80% in the middle?” hints at ambitions to reshape the political landscape, though such a move remains speculative.
For Musk, the stakes are equally high. Tesla’s stock plunge underscores investor sensitivity to his political entanglements, while SpaceX’s reliance on government contracts makes it vulnerable to Trump’s threats. Protests at Tesla sites in the U.S. and Europe, coupled with declining sales, reflect growing public and investor frustration with Musk’s focus on politics over business. His brief threat to decommission Dragon risked undermining U.S. space capabilities, highlighting the delicate balance between his corporate and political roles.
As the world watches this high-stakes drama unfold, the question is not just who will emerge victorious, but how their clash will reshape the intersection of wealth, power, and politics in an increasingly polarised era.
With Reuters and social media, edited by g.g.
Caption: President Donald Trump holds during a press conference in the Oval Office at the White House in Washington, DC, USA, 30 May 2025. [EPA-EFE/FRANCIS CHUNG / POOL]
Updated: June 6, 2025 - 06:25
