Trump and Musk’s Explosive Rift Shakes Political and Business Worlds

In a clash that’s rattling both Washington and Wall Street, President Donald Trump and tech billionaire Elon Musk have gone from political allies to bitter opponents in a public feud erupting with personal jabs, policy disputes, and financial threats.

The dramatic fallout unfolded Thursday as Trump took aim at Musk’s criticisms of the Republican-backed “One Big Beautiful Bill,” a sweeping legislative package making its way through Congress. Once lauded by Trump as a visionary leader and government partner, Musk now finds himself on the receiving end of the president’s ire — and he’s firing back with a vengeance.

A Relationship in Ruins

The spat has its roots in Musk’s outspoken disapproval of the new GOP bill, which he labeled a “disgusting abomination,” primarily for removing a key electric vehicle (EV) tax incentive. “Elon’s upset because we took out the EV mandate,” Trump said during a bilateral meeting in the Oval Office. “He knew it from the beginning, but now he’s playing politics.”

For context, Tesla — Musk’s flagship EV company — has seen slowing sales amid rising global competition and a growing backlash to Musk’s politicized image. The dropped EV subsidy could deal a further blow to Tesla’s bottom line, which many analysts say explains Musk’s public pivot.

This feud marks a significant shift. Musk once stood as a close Trump confidant, even contributing over $250 million to Trump’s 2024 campaign. After Trump’s re-election, Musk was invited into the administration to lead the newly formed Department of Government Efficiency (DOGE), where he slashed federal jobs, consolidated data systems, and drew praise from Trump for “saving the country billions.”

But as Trump shifted focus to massive spending initiatives, Musk’s influence waned. The final straw, it appears, was the exclusion of Musk-friendly policies in the current bill.

Verbal Warfare on Social Media

After Trump’s rebuke, Musk responded with a salvo of posts on X (formerly Twitter), alleging that Trump’s policies would plunge the U.S. into recession and claiming personal betrayal.

“Without me, Trump would have lost the election,” Musk posted. “Such ingratitude.”

Trump didn’t hold back, either. On Truth Social, he alleged that Musk “lost it” after being asked to step down from his White House role, and floated the possibility of cutting government contracts with Musk’s companies — a not-so-subtle threat to the billions tied to SpaceX and Tesla through federal deals.

Musk escalated further, referencing the notorious “Epstein files” and implying Trump’s name was among them. The Department of Justice has indeed released documents related to Epstein, but no new revelations have directly implicated Trump. Nonetheless, Musk’s comment stirred controversy and deepened the rift.

White House and Allies React

White House Press Secretary Karoline Leavitt dismissed Musk’s allegations, calling them “an unfortunate episode” from someone upset about policy losses. “President Trump remains focused on passing this historic legislation,” she said.

Others, however, have taken sides. Former Trump adviser Steve Bannon called for a federal investigation into Musk’s actions and urged the immediate termination of all government contracts tied to Musk’s companies.

Meanwhile, Musk fanned the flames by supporting a viral post suggesting Trump should be impeached and replaced by Vice President JD Vance. “Yes,” Musk wrote in response, making his position unmistakably clear.

Political Fallout and Financial Stakes

Behind the scenes, the rift could have real consequences. Musk’s companies rely heavily on federal partnerships, especially SpaceX, which handles everything from satellite launches to defense logistics. Any disruption in those ties could have economic and geopolitical ripple effects.

Additionally, the clash underscores a larger shift in Trump’s political coalition. Once seen as a tech-savvy maverick who could help modernize government, Musk now joins a growing list of former allies estranged by Trump’s evolving agenda.

The Congressional Budget Office recently projected that Trump’s proposed legislation would add $2.4 trillion to the national debt over the next decade — a figure Musk cited in his criticism. “This bill isn’t conservative. It’s reckless,” he told CBS News during his final days in government.

The Final Word?

While the dust has yet to settle, one thing is clear: the once-strong Trump-Musk alliance has shattered in spectacular fashion. With Musk doubling down on political dissent and Trump openly threatening economic retaliation, the fallout could reshape power dynamics in both D.C. and Silicon Valley for months — or even years — to come.