In a dramatic turn of events, the once-amicable relationship between United States President Donald Trump and tech billionaire Elon Musk has devolved into a public feud, marked by threats, accusations, and significant financial repercussions.
The conflict ignited when Musk, former head of the Department of Government Efficiency and a key supporter of Trump’s administration, vehemently criticized the newly passed “One Big Beautiful Bill.” Musk labeled the tax and spending legislation a “disgusting abomination,” arguing it would exacerbate the national deficit and eliminate crucial electric vehicle tax credits, directly impacting Tesla, one of Musk’s flagship companies.
Responding to Musk’s dissent, President Trump took to Truth Social, branding Musk as “CRAZY” and suggesting that terminating federal contracts with Musk’s companies, including Tesla and SpaceX, could save the government “billions and billions of dollars”.
Trump further claimed that Musk’s opposition stemmed from the bill’s cuts to EV mandates, stating, “I took away his EV Mandate… and he just went CRAZY!”
Musk retaliated on his social media platform, X, posting, “Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!” This allegation alludes to sealed documents related to the late financier Jeffrey Epstein, though Musk provided no evidence to support his claim.
The fallout has had immediate financial implications. Tesla’s stock plummeted by over 14 per cent, erasing approximately $150 billion in market value, as investors reacted to the escalating tensions and potential loss of government contracts.
This public spat marks a significant shift from the previously strong alliance between Trump and Musk. Musk had been instrumental in Trump’s 2024 re-election campaign, contributing over $290 million and leading efforts to streamline government operations through DOGE.
