Trump–Musk Feud Escalates: From Political Alliance to Public War

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A Former Alliance Turns Hostile

Once seen as allies in promoting innovation and deregulation, former U.S. President Donald Trump and Tesla/SpaceX CEO Elon Musk have now become bitter rivals. The feud, which began simmering following Musk’s exit from his quasi-governmental role in the Department of Government Efficiency, exploded into the public eye after Musk made shocking allegations implicating Trump in the Jeffrey Epstein scandal.

Oval Office Outburst and Musk's Defiant Rebuttal

Tensions erupted during an Oval Office interaction with German Chancellor Friedrich Merz, when Trump was asked about Musk's criticism of his flagship budget legislation. Trump expressed public disappointment, claiming Musk had previously praised him and understood every aspect of the bill.
Musk responded directly on X (formerly Twitter), saying:

“False, this bill was never shown to me even once and was passed in the dead of night…”

He accused Trump of ingratitude and claimed that his support helped Trump win the presidency.

The Epstein Allegation: A Political Bombshell

The feud turned explosive when Musk suggested that Trump’s name appeared in the sealed Epstein files, alleging this was the reason they had not been made public. He cited a decades-old quote from Trump that hinted at his association with Epstein and young women. Musk closed his post with a taunting, “Have a nice day, DJT,” and warned, “The truth will come out.”

Threats and Counter-Threats: National Programs at Risk

The situation deteriorated quickly:

• Trump threatened to terminate all governmental subsidies and contracts to Musk's companies.

• Musk retaliated by threatening to decommission the Dragon spacecraft, a move that could disrupt U.S. space operations, including astronaut retrieval missions from the International Space Station (ISS).

Economic Fallout: Tesla Stock Tumbles

The feud triggered a financial blow. On the day of the most intense exchange:

• Tesla shares fell over 14%, wiping out $152 billion in market capitalization.

• Musk’s personal net worth fell by $8.73 billion, according to Bloomberg.

This highlights the powerful impact political instability can have on economic markets, especially when major government contractors are involved.

Political Backlash: Impeachment and a New Party?

Musk went further by:

• Supporting a call for Trump’s impeachment, reposting a message suggesting Senator JD Vance should replace him.

• Polling his followers on whether a new political party should be formed, hinting at a possible political movement challenging Trump’s influence.

Budget Bill and Legislative Crisis

Trump's central grievance appears tied to Musk’s opposition to his budget proposal, dubbed the “Big, Beautiful Bill”, which includes:

• A record $1.6 trillion in cuts

• Significant tax reforms

• Elimination of the EV mandate, which Trump claimed was hurting American car buyers.

Musk denies this was the catalyst for their fallout, suggesting the bill was poorly constructed and fiscally irresponsible.

SpaceX vs. Washington: A Geopolitical Risk

With SpaceX deeply integrated into U.S. space strategy, Musk’s threat to suspend the Dragon program sends alarm bells. The move could stall national and international space missions — especially those involving emergency astronaut retrieval and satellite launches vital to defense and communication.

Final Exchanges: Social Media Warfare

The war of words continues online:

• Trump doubled down on Truth Social, asserting Musk went "crazy" after the EV mandate was scrapped.

• Musk reposted critics highlighting Trump’s failure to focus on actual policy, calling his behavior a “waste of time.”

Legislative Consequences Loom

Trump’s budget bill, already under fire, now risks collapse amid this feud. The Congressional Budget Office (CBO) estimates the current version would add $2.4 trillion to the national deficit over 10 years, reinforcing Musk’s claim that:

“Congress is spending America into bankruptcy!”

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