The once-close alliance between President Donald Trump and billionaire tech mogul Elon Musk has imploded, erupting into a public feud that has captivated political and financial spheres. The clash, which intensified on June 5, 2025, centers on disagreements over Trump’s signature “Big, Beautiful Bill” and has spiraled into personal attacks, financial threats, and allegations that could reshape the political and economic landscape.
The rift began when Elon Musk, who recently stepped down as a White House adviser and head of the Department of Government Efficiency (DOGE), publicly criticized Trump’s sweeping tax and domestic policy legislation, dubbed the “Big, Beautiful Bill.” On June 3, Musk took to X, the social media platform he owns, to denounce the bill as a “disgusting abomination,” citing concerns over government spending and the national deficit. This marked a stark departure from the cordial note on which Musk left his White House role on May 30, when he and Trump appeared together in the Oval Office, with Trump praising Musk’s contributions.
The bill, which includes tax cuts, immigration enforcement measures, and the elimination of electric vehicle (EV) mandates, became a flashpoint. Trump and his allies suggested Musk’s opposition stemmed from self-interest, particularly the removal of EV subsidies critical to Tesla’s business model. “Elon’s upset because we took the EV mandate, which was a lot of money for electric vehicles,” Trump said during an Oval Office press conference on June 5. Musk, however, framed his criticism as a principled stand against excessive spending, even resurfacing Trump’s own 2013 posts condemning debt ceiling increases to highlight perceived hypocrisy.
The disagreement escalated into a full-blown public brawl, with both men leveraging their respective social media platforms; Trump on Truth Social and Musk on X to trade insults and threats. Trump accused Musk of “going CRAZY” after being asked to leave his advisory role and claimed he had revoked the EV mandate, which he alleged Musk knew about for months. In response, Musk fired back, claiming Trump would not have won the 2024 election without his support and accusing the president of ingratitude.
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The feud took a darker turn when Musk alleged, without evidence, that Trump’s name appeared in undisclosed Jeffrey Epstein files, a claim that sent shockwaves through political circles. Trump’s press secretary, Karoline Leavitt, dismissed the accusation as “an unfortunate episode” driven by Musk’s frustration with the bill’s content. The White House noted that Trump’s name in the Epstein files was not new information, and a source close to the administration questioned Musk’s motives, pointing to his prior close association with Trump. Trump has not directly addressed the Epstein allegation but continued to express disappointment, stating, “Elon and I had a great relationship,” notably using the past tense.
The feud’s escalation has had immediate economic repercussions, particularly for Musk’s companies. Tesla’s shares plummeted 14% on June 5, wiping out approximately $150 billion in market value, as Trump threatened to cancel billions in government contracts and subsidies for Musk’s ventures, including SpaceX. These contracts, valued at around $22 billion, are critical to SpaceX’s operations, including its Dragon spacecraft program, which supports the International Space Station. Musk briefly threatened to decommission the Dragon program but later backtracked, citing its importance to NASA.
The conflict has also put Republicans in a precarious position. House Speaker Mike Johnson and other GOP leaders expressed unease, urging de-escalation to avoid collateral damage. Steve Bannon, a former Trump adviser, called for investigations into Musk and the cancellation of his contracts, while a Musk adviser warned that the billionaire “does not give a s—” about Republican Party priorities and could “blow them up.” Hedge fund manager Bill Ackman attempted to mediate, posting on X that Musk and Trump “should make peace for the benefit of our great country,” a sentiment Musk appeared to endorse.
The Trump-Musk feud, described as a clash between “the world’s most powerful man and its richest,” has far-reaching implications. For Musk, the loss of government contracts could cripple SpaceX and impact Tesla’s competitiveness in a global EV market already facing challenges. For Trump, the fallout risks alienating a key ally whose influence and wealth played a significant role in the 2024 election. The public nature of the dispute, amplified by their massive social media platforms, has also heightened political polarization, with allies of both men being forced to choose sides.
Reports indicate that White House aides are working to broker a détente, with a call scheduled between Trump and Musk on June 6. However, the feud’s intensity-fueled by personal egos and competing visions for America’s future, suggests reconciliation may be challenging. Musk’s warnings about Trump’s tariffs potentially causing a recession and Trump’s threats to target Musk’s business interests underscore the high stakes.