In a dramatic turn of events, a once-strong alliance between US President Donald Trump and tech mogul Elon Musk has deteriorated into a heated public feud. The confrontation erupted following Musk’s sharp criticism of Trump’s major tax and spending bill, which recently passed in the House and awaits a crucial Senate vote. This latest spat comes on the heels of a seemingly amicable farewell between the pair, where Trump gifted Musk a golden key during his departure from the Oval Office just last week.
The tension began on Thursday as Trump publicly expressed his discontent, stating he was “very disappointed” in Musk’s objections to what he called his “big, beautiful bill.” In response, Musk did not hold back, lashing out on his social media platform, X, accusing Trump of “ingratitude” and hinting at the need to forge a new political alliance for the majority of Americans.
This rhetoric from Musk has had significant implications for the market. Tesla shares fell dramatically by 14% following the exchanges, highlighting the financial stakes involved in their increasingly bitter clash. In a twist, after initially threatening to decommission SpaceX’s crucial Dragon spacecraft, Musk backtracked, asserting that he would continue its operation, a decision likely influenced by both public backlash and the weight of government contracts at risk.
As the conflict escalated, Trump retaliated with veiled threats to discard government contracts linked to Musk’s ventures, which include SpaceX and Tesla. The financial implications for Musk are staggering, with estimates suggesting that his enterprises benefit from billions in federal funding. Long-time Trump advisor Steve Bannon even went so far as to suggest the president should “seize SpaceX tonight,” reflecting just how far this dispute has spiraled.
Analysts have reflected on how this split has developed from their historical camaraderie, where Musk previously played a significant role in Trump’s budgeting strategies. Each public appearance by Musk during Trump’s administration seemed to solidify an unshakeable bond, making the current hostility all the more shocking. For Musk, this is not just a war of words; his business interests hang in the balance.
In what seems to be a sharp pivot, headlines are already characterising Musk’s social media engagements as a strategic move to galvanise support as he hints at dissatisfaction with the current political landscape, suggesting that new parties might be necessary. This rupture raises questions about the future of their relationship and the broader political landscape in the US.
Amidst the fallout, sources indicate that aides to Trump have arranged for a phone call with Musk to attempt damage control, although analysts argue that the cordiality seen just days prior is unlikely to resurface soon.