How It Escalated and What Happens Next
The once-close alliance between Donald Trump and Elon Musk has erupted into a bitter public feud, marked by threats, insults, and financial repercussions. What began as a partnership built on mutual political and business interests has devolved into a high-stakes battle over policy, power, and personal grievances. This article examines the key moments in their fallout, the role of Tesla stock, the Epstein files controversy, and what the future holds for these two influential figures.
The Origins of the Trump-Musk Alliance
The relationship between Trump and Musk began in earnest in July 2024 when Musk publicly endorsed Trump following an assassination attempt at a Pennsylvania rally. Musk’s support, including a reported $280 million in campaign contributions, played a pivotal role in Trump’s re-election . Post-election, Musk was appointed to lead the Department of Government Efficiency (DOGE), tasked with slashing federal spending—a role that initially aligned with Trump’s anti-bureaucracy agenda .
However, cracks started forming as early as April 2025, when Musk began reducing his involvement in DOGE amid reports of investor concerns over his divided attention . By May 2025, Musk publicly criticized Trump’s “Big, Beautiful Bill”, a sweeping tax and spending package, calling it fiscally irresponsible and a “disgusting abomination” 15. His opposition marked the beginning of an irreversible rift.
The Breaking Point: Policy Disputes and Public Attacks
The feud escalated dramatically in June 2025 when Musk launched a social media campaign urging Americans to “KILL the BILL”, arguing it would balloon the national deficit by $2.4 trillion over a decade 58. Trump and Republican leaders dismissed Musk’s claims, with House Speaker Mike Johnson calling him “flat wrong” . The White House countered with a statement labeling deficit concerns a “hoax”, further inflaming tensions .
Musk’s defiance reached new heights when he accused Trump of being implicated in the unreleased Epstein files, a claim the White House dismissed as baseless 69. Trump retaliated by threatening to cut government contracts with SpaceX and Tesla, causing Tesla stock (TSLA) to plummet 14% in a single day—its worst drop in history . Musk briefly threatened to decommission SpaceX’s Dragon spacecraft before backtracking, signaling a possible de-escalation .
The Epstein Files Controversy and Personal Attacks
One of the most explosive moments in the feud came when Musk suggested Trump was hiding in the Epstein files, referencing the late financier and convicted sex offender Jeffrey Epstein 69. Trump denied any wrongdoing, stating he had a “falling out” with Epstein years ago. The White House condemned Musk’s insinuation as “unfortunate” and politically motivated .
This personal attack marked a turning point, with Trump mocking Musk’s “black eye” (reportedly from his son) and Musk accusing Trump of ingratitude, claiming, “Without me, Trump would have lost the election” . The exchange underscored how deeply personal the feud had become, transcending policy disagreements.
Financial Fallout: Tesla Stock and Market Reactions
The public spat had immediate financial consequences. Tesla’s stock (TSLA) lost $150 billion in market value following Trump’s threats to revoke subsidies 11. Investors, already wary of Musk’s political distractions, reacted sharply to the instability. Meanwhile, SpaceX’s government contracts—critical for NASA missions—faced uncertainty, though Musk later walked back his threat to halt operations .
Analysts speculate that the feud could have long-term repercussions for both men. Musk’s influence in Washington may wane, while Trump risks alienating a key donor ahead of the 2026 midterms 15. Some Republicans fear Musk could fund primary challenges against lawmakers who supported Trump’s bill 5.
What Happens Next?
Despite the vitriol, both sides have signaled a possible truce. A phone call between Trump and Musk was scheduled for June 7, suggesting an attempt at reconciliation . However, the underlying tensions—over spending, subsidies, and personal pride—remain unresolved.
Musk has floated the idea of creating a new political party, targeting the “80% in the middle” . Whether this gains traction remains to be seen, but it underscores his growing disillusionment with traditional GOP politics. Meanwhile, Trump’s ability to pass his legislative agenda could hinge on whether he can contain the fallout from this feud.
Conclusion
The Trump-Musk fallout is more than a clash of egos—it’s a battle over fiscal policy, political influence, and personal legacy. With Tesla stock reeling, the Epstein files controversy lingering, and both men digging in, the feud shows no signs of a quick resolution. As the drama unfolds, its impact on Washington, Wall Street, and the 2026 elections will be closely watched.
For now, one thing is clear: the bromance is over, and the fallout is just beginning.
Key Takeaways:
- Musk’s opposition to Trump’s “Big, Beautiful Bill” sparked the feud, with Musk calling it a “disgusting abomination” 15.
- Tesla stock (TSLA) dropped 14% after Trump threatened to cut government contracts .
- Musk’s Epstein files accusation escalated the conflict into personal attacks .
- A potential reconciliation call is scheduled, but long-term tensions remain .
- The feud could reshape political alliances ahead of the 2026 midterms
