The once-unlikely alliance between Donald Trump and Elon Musk has officially combusted into an all-out political and business feud that could reshape the Republican Party, government spending, and the future of Musk’s empire.
In a day of high drama in Washington, President Trump slammed Musk as “crazy” and accused him of turning hostile after losing political influence. The president’s fiery comments from the Oval Office — followed by a series of posts on Truth Social — marked a severe rupture in the relationship between two of the most influential figures in America.
What Happened
• Trump accused Musk of opposing his flagship tax bill because it cut EV mandates and federal subsidies that benefitted Tesla and SpaceX.
• Trump threatened to cancel all government contracts with Musk’s companies, including SpaceX and Starlink.
• Musk retaliated with explosive posts on X (formerly Twitter), calling for Trump’s impeachment and accusing him of deficit hypocrisy.
• The Tesla CEO also hinted at launching a new political party and backed removing GOP lawmakers loyal to Trump.
• Shares in Tesla plummeted 14% on the day, wiping over $150 billion off its market cap.
Why It Matters
The breakdown comes at a critical moment:
• Trump’s Tax Bill: Critics say it adds $2.4 trillion to the US deficit. Musk had quietly supported fiscal reforms — until the bill undercut renewable energy incentives.
• Government Contracts: Trump’s threat to terminate billions in federal contracts could impact NASA launches, Starlink military deals, and Musk’s broader financial stability.
• Tech vs Trump: Musk’s influence in Washington, especially with GOP lawmakers, remains vast. His suggestion that he will outlive Trump politically carries weight.
Key Fallout
• Nasa and Starlink at Risk: Trump has already pulled Jared Isaacman’s nomination to lead NASA, and insiders say more allies of Musk are leaving the Department of Government Efficiency (Doge).
• Political Realignment: Musk has suggested backing anti-Trump Republicans or even forming a new party — moves that could fracture the conservative base.
• Market Turbulence: Tesla’s record drop shows that political instability can now shake financial markets when tech titans and politicians collide.
What Could Happen Next
• Policy Gridlock: If Musk pushes Republicans to reject Trump’s bill, it could stall fiscal legislation and deepen divisions within the party.
• Contract Disruptions: Expect lawsuits or contract renegotiations between Musk’s companies and federal agencies if Trump follows through.
• Third-Party Movement: Musk’s threat of a new political party may be more than rhetoric. He’s assembling tech donors and disillusioned conservatives behind the scenes.
• Democratic Opportunity: The feud gives Democrats ammunition — especially if Musk turns his attention to exposing “pork” in the tax bill.
Bottom Line
The Trump–Musk feud isn’t just a clash of egos — it’s a battle for control over the future of American policy, innovation, and conservative ideology. With both figures commanding massive followings, the fallout could reshape electoral dynamics and federal spending for years to come.
