A dramatic political and business feud has erupted between President Donald Trump and billionaire tech mogul Elon Musk. What began as a close relationship has now turned into a public battle filled with insults, threats, and major consequences for both Washington and Wall Street.
The conflict started after Musk harshly criticized Trump’s new tax and spending bill, calling it a “disgusting abomination” that would add trillions to the national debt. Trump, who had remained silent for days, finally hit back on Thursday from the Oval Office, saying he was “very disappointed” in Musk and hinting that their partnership may be over. He then posted on Truth Social, threatening to end all government contracts and subsidies for Musk’s companies, including Tesla and SpaceX.
The fallout was immediate. Tesla stock plummeted, dropping 14.3% in one day the worst in its history wiping out about $150 billion in market value. Investors were alarmed by the political drama and worried that Musk’s growing involvement in politics was distracting him from his business responsibilities.
Musk didn’t hold back either. On his platform X, he agreed with a user who called for Trump’s impeachment — even though Trump’s Republican party controls both houses of Congress, making impeachment unlikely. Musk also reminded the public that he had donated nearly $300 million to Trump and Republicans in the last election, implying that Trump should be more grateful.
The feud grew uglier when Trump accused Musk of being upset over losing electric vehicle tax credits in the new bill and missing his former role in the administration. Musk had recently resigned as head of the Department of Government Efficiency after pushing for massive budget cuts. He had become one of Trump’s most high-profile advisers, often seen in the White House and on Capitol Hill.
Musk responded with more sharp posts, saying Trump’s tariffs would lead to a recession and that the president was now ignoring the very values he once supported like cutting federal spending. He even threatened to shut down SpaceX’s Dragon spacecraft, which is critical for sending American astronauts to the International Space Station. However, he later backed down after a follower on X suggested the two men should take a break and cool off.
There were signs by Thursday evening that tensions might be easing. Musk responded, “You’re not wrong,” to a message calling for peace between the two powerful figures. But the damage might already be done.
Their public split comes at a critical time for Republicans, who are trying to hold on to power in Congress. Musk has a massive online following and deep connections in Silicon Valley. His support has been crucial for Republican fundraising and outreach, but he now says he may reduce his political donations. He even floated the idea of starting a new political party to represent the “80% in the middle” of Americans who feel left out by both parties.
This fight between Trump and Musk could reshape not only politics but also the tech world and financial markets. With so much power, money, and ego involved, the road to peace may be long and very public.
