The once high-flying political and business alliance between President Donald Trump and tech mogul Elon Musk has dramatically imploded, unfolding in real-time across social media platforms with significant financial and political consequences.
The feud reached its boiling point on Thursday when Trump threatened to cancel lucrative government contracts with Musk’s companies, including SpaceX and Starlink. The Tesla CEO retaliated by suggesting Trump’s administration had withheld sensitive Jeffrey Epstein-related files because they implicated the president. This exchange marked the culmination of days of escalating tensions that began when Musk publicly criticised Trump’s “Big Beautiful Bill” spending package on his social media platform X and in a TV interview.
The confrontation intensified during Trump’s White House meeting with Germany’s new chancellor, when the former president expressed his disappointment with Musk, prompting an immediate response from Musk on X.
Trump escalated matters on Truth Social, proposing to “terminate Elon’s governmental subsidies and contracts” as a way to save billions in the federal budget, only for Musk to reply: “Go ahead, make my day.”
This preceded a dramatic 14% plunge in Tesla’s stock value, wiping out approximately $150 billion in market capitalization and $20 billion from Musk’s personal fortune.
Adding fuel to the fire, Musk tweeted what many had for long suspected: “Trump was in the Epstein files. That is the real reason they have not been made public.” This allegation came just hours after SpaceX announced plans to decommission spacecraft used for NASA missions to the International Space Station.
The spectacular fallout stands in stark contrast to what had been one of Washington’s most powerful alliances. Just months ago, Musk was a key Trump supporter, having pledged $250 million to his campaign and frequently appearing at rallies. Their relationship had been so close that Musk enjoyed Lincoln Bedroom privileges, joined Cabinet meetings wearing MAGA gear, and stood beside Trump during important political moments. As recently as three months ago, Trump had publicly supported Tesla by purchasing one of its vehicles and staging an infomercial-like press briefing on the White House parking lot for Tesla.
Trump has attempted to frame Musk’s opposition as stemming solely from reduced electric vehicle tax credits in the spending bill, while Musk countered by saying that the legislation contained “a MOUNTAIN of DISGUSTING PORK” and had been rushed through Congress late at night without proper review.