What started as a political alliance in July 2024 has now exploded into a public and bitter feud between U.S. President Donald Trump and billionaire entrepreneur Elon Musk. The once-close allies have turned against each other in a series of heated exchanges, political threats, and financial blows—culminating this week with a massive hit to Tesla’s market value.
From Alliance to Fallout
The Trump-Musk alliance began after the assassination attempt on Trump during a rally in Butler, Pennsylvania, in July 2024. Musk was quick to lend his support, posting on X:
“I fully endorse President Trump and hope for his rapid recovery.”
He later joined Trump on the campaign trail, even wearing a personalized “Make America Great Again” cap. Following Trump’s inauguration, Musk was appointed an unpaid presidential advisor under the “special government employee” designation.
In February 2025, Musk expressed his admiration for Trump, posting:
“I love @realDonaldTrump as much as a straight man can love another man.”
During the early months of the administration, Musk became the face of the Department of Government Efficiency (DOGE), promoting aggressive cost-cutting reforms.
But their relationship began to crumble soon after Musk’s departure from the White House. Tensions first emerged when Musk criticized Trump’s sweeping “One Big Beautiful Bill,” claiming it would balloon the federal deficit and undermine DOGE’s work.
On June 3, Musk posted:
“This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.”
The Breaking Point
Things came to a head on June 5, when Trump publicly accused Musk of opposing the bill because it removed electric vehicle (EV) tax credits—potentially impacting Tesla’s finances.
“Elon and I had a great relationship. I don’t know if we will any more,” Trump said.
“I’m very disappointed in Elon. He knew every aspect of this bill. He knew it better than almost anybody, and he never had a problem until right after he left.”
Musk hit back strongly the next day on June 6:
“This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!”
Later that day, Musk took the fight further by suggesting Trump had ties to convicted sex offender Jeffrey Epstein.
“Trump’s name is in the Epstein files. That is the real reason they have not been made public.”
He followed that up with an old Trump quote:
“He’s a lot of fun to be with… and many of [the women] are on the younger side.”
Musk ended the post with a jab:
“Have a nice day, DJT!”
He also floated the idea of launching a new political party for “the 80% in the middle,” and posted a poll to gauge support.
Taking it further, Musk backed calls for Trump’s impeachment and endorsed Senator JD Vance as a replacement. He warned that Trump’s global tariff policies could:
“Cause a recession in the second half of this year.”
Trump’s Retaliation and Market Consequences
On June 6, Trump hit back by threatening to revoke government contracts and subsidies for Musk’s businesses. The market reaction was swift—Tesla’s stock plunged over 14%, wiping out around $152 billion in value. Musk himself lost $8.73 billion in net worth in a single day, according to Bloomberg’s Billionaires Index, cited by ANI.
Trump took to Truth Social to express his anger:
“I don’t mind Elon turning against me, but he should have done so months ago.”
He defended the bill in question, writing:
“One of the Greatest Bills ever presented to Congress,” and warned that failing to pass it would lead to a “68 per cent Tax Increase.”
Doubling down, Trump added:
“Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate… and he just went CRAZY.”
The public spat didn’t stop there. Trump went on to question Musk’s government ties:
“The easiest way to save money in our Budget… is to terminate Elon’s Governmental Subsidies and Contracts.”
As of now, the once-allies appear to be locked in a high-stakes battle—with political, personal, and economic implications still unfolding.