The once-cooperative relationship between Elon Musk and Donald Trump has deteriorated into a public feud that has significant political and economic implications. This article explores the timeline of their falling-out and the potential consequences moving forward.
The Breakdown of the Alliance
In June 2025, tensions between Musk and Trump escalated following Musk’s criticism of the “One Big Beautiful Bill Act,” a major legislative proposal championed by Trump. Musk argued that the bill would increase the national deficit by $1.5 trillion, undermining previous fiscal reforms. Trump, in turn, expressed disappointment in Musk, suggesting that the billionaire had benefited from government support and was now turning against the administration.
The feud intensified on social media platforms, with Musk accusing Trump of “ingratitude” and suggesting that the president was implicated in the Jeffrey Epstein case. Trump retaliated by threatening to cancel government contracts with Musk’s companies and publicly criticizing his actions.
Political and Economic Fallout
The public dispute has had ripple effects across various sectors:
- Stock Market Impact: Shares in Tesla and Trump Media & Technology Group experienced significant declines. Tesla’s stock dropped by 15%, marking its worst day since the COVID-19 pandemic, while Trump Media’s shares fell 8%.
- Political Ramifications: Musk’s criticism of Trump has led to divisions within the Republican Party, with some lawmakers aligning with Musk’s fiscal concerns, while others support Trump’s legislative agenda.
- Government Relations: Former Trump advisor Steve Bannon has urged the president to sever ties with Musk, citing potential conflicts of interest and questioning Musk’s loyalty.
Looking Ahead
The ongoing feud between Musk and Trump raises questions about the future of their political and business endeavors. Musk has suggested the formation of a new political party to represent centrist views, which could further fragment the political landscape . Meanwhile, Trump faces challenges in maintaining party unity and navigating the fallout from the dispute.
As the situation develops, the implications for U.S. politics and the tech industry remain uncertain. Observers will be closely monitoring how both figures manage their public personas and influence in the coming months.
