The public feud between Elon Musk and Donald Trump—two of the most influential figures in business and politics—has erupted into a bitter war of words that could have lasting consequences for Wall Street, Washington, and the future of U.S. tech policy.
Once allies with overlapping interests in deregulation, space innovation, and conservative politics, Musk and Trump have now turned on each other, airing grievances that expose deep personal and professional tensions. Here’s a breakdown of what’s at stake—and what’s been revealed—in their high-profile falling out.
A $138 Billion Meltdown
The fallout isn’t just rhetorical—it’s financial. Following their clash, Tesla stock plummeted by over 14% in a single day, wiping $138 billion off its market value. Musk’s personal net worth fell by $34 billion. Analysts like Garrett Nelson of CFRA warned investors to brace for more volatility, while others suggested the loss of MAGA-aligned support could be particularly damaging.
Trump, who once promoted Tesla at White House events and even bought one himself, is now reportedly considering selling the vehicle. Commerce Secretary Howard Lutnick, who had previously encouraged investors to back Musk’s EV empire, has remained silent. The support base that once shielded Tesla during brand backlash may now be fractured.
SpaceX at Risk
Trump escalated tensions by threatening to cancel government contracts tied to Musk’s businesses, declaring on Truth Social that doing so could save “billions and billions.” While Tesla receives far fewer public funds, SpaceX is deeply embedded in U.S. federal projects.
The rocket company holds around $22 billion in government contracts, including deals with NASA and the Department of Defense. NASA plans to use SpaceX’s Starship for the upcoming Artemis moon missions and relies on its Dragon spacecraft to reach the International Space Station. Any disruption could jeopardize not only Musk’s businesses but also critical components of U.S. space policy.
In a moment of apparent retaliation, Musk posted that SpaceX would begin decommissioning its Dragon program—only to later reverse course.
Is Musk Starting a New Political Party?
Adding fuel to the fire, Musk floated the idea of forming his own political party. A poll on X (formerly Twitter) asking whether he should launch one received over 5.6 million responses—with 80% voting yes. High-profile figures like Mark Cuban signaled support. Though it’s unclear if Musk is serious, even the suggestion creates additional uncertainty for the GOP.
Musk has long used his social media platform to amplify conservative voices and policies, including support for Trump. But now, the billionaire appears to be drawing a line—and potentially taking part of the base with him.
Some in the GOP, like Vice President JD Vance, have doubled down on their support for Trump. Others, including hedge fund mogul Bill Ackman, are urging reconciliation between the two titans for the “good of the country.” Musk didn’t reject the idea, replying, “You’re not wrong.”
Airing Dirty Laundry in Public
What began as policy disagreements has become intensely personal. Trump claimed on Truth Social that Musk was “wearing thin” and that he was asked to leave his advisory role in the White House. Trump accused Musk of opposing a bill only after discovering it would gut EV mandates that once benefitted Tesla.
Musk denied seeing the bill, called Trump ungrateful, and asserted that his support was instrumental in Trump’s 2020 win. “Without me, Trump would have lost the election,” Musk posted. Then Musk dropped a bigger bomb: accusing Trump of being tied to the Jeffrey Epstein files. While Trump’s past connection to Epstein has long been public—and Trump claims to have cut ties years ago—Musk’s claim implies a more nefarious reason for the files not being released.
What Happens Next?
The breakdown between Musk and Trump is more than just an ego clash—it touches on massive government contracts, the future of autonomous vehicle policy, and political realignments that could ripple across the 2024 and 2028 elections.
Whether the rift is permanent or just another chapter in their unpredictable relationship remains to be seen. But one thing is clear: the once-strategic alliance between America’s most powerful businessman and its most polarizing political figure is now in open conflict—with real consequences.
Prepared by Navruzakhon Burieva
