What began as a political bromance has turned into a full-blown feud. Last night, Elon Musk and Donald Trump clashed head-on on social media, marking the end of their alliance. Musk even dug up one of Trump’s tweets from 12 years ago to use as ammunition. The exchange was sharp and personal.
By sunrise, the financial markets were bleeding: Tesla’s market cap plunged by $153 billion, marking its largest single-day drop in history. Bitcoin fell 4%, Dogecoin tumbled 10%, and highly leveraged investor James Wynn was liquidated, losing roughly $29 million.
Musk Enters, Then Exits the Trump Circle
Their honeymoon began during the 2024 election. Musk spent $290 million backing Trump, personally touring swing states to rally support. Upon victory, Trump appointed Musk to head the “Department of Government Efficiency” (DOGE), tasking him with federal reform and budget cuts. For a moment, Musk looked like America’s answer to Yang Jinshui—a reformist with tech muscle.
But by April 2025, cracks appeared. A heated public argument broke out between Musk and White House Chief of Staff Besant over tariff policy. The disagreement nearly turned physical at the White House gates. When Trump later backed Besant’s policy direction, it signaled the beginning of the end for the Trump-Musk alliance.
A month later, Musk announced he would step down as a "special government employee." Though the DOGE team would continue operations, the seeds of confrontation were already sown.
A Single Bill Ignites the Feud
In May 2025, the Republican-led House passed what Trump hailed as a “big, beautiful” tax and spending package. It would push the U.S. deficit to $2.5 trillion, while immediately ending a $7,500 EV tax credit—seven years ahead of schedule. Tesla, among others, stood to lose billions. JPMorgan analysts estimated a $1.2 billion hit to Tesla's annual profits.
On June 4, Musk publicly denounced the bill as “disgusting.” He began lobbying Republican lawmakers to block it and even wrote to Speaker Mike Johnson to request the EV credit be reinstated.
Round One: The War of Words Begins
Trump expressed “disappointment,” claiming Musk was well aware of the bill’s contents but was upset about the elimination of EV mandates.
Musk fired back:
“The Trump administration preserved oil & gas subsidies in this bill but slashed incentives for EVs and solar. I was never shown the full bill—it was rushed through in the dead of night.”
He also resurfaced a 2013 Trump tweet opposing debt ceiling hikes, quoting:
“I can’t believe the GOP is going to raise the debt ceiling. I’m a Republican & ashamed!”
Musk added: “Well said.”
Round Two: Gratitude, Betrayal, and Threats
The dispute quickly escalated. Musk accused Trump of ingratitude, saying Trump wouldn’t have won without his support:
“Without me, Trump would’ve lost. The Democrats would control the House, and the GOP would only hold 49 Senate seats.”
Trump clapped back:
“I would’ve won Pennsylvania without Musk.”
He later posted on Truth Social:
“The easiest way to cut the deficit? Cancel subsidies and contracts with Musk. That saves billions. I’m shocked Biden didn’t already do this.”
Musk retaliated:
“In light of President Trump’s threat to cancel government contracts, SpaceX will begin decommissioning the Dragon capsule immediately.”
This was no longer a spat—it was a full-blown political-tech crisis.
Round Three: Musk’s Bombshell and “Lolita Island”
The final blow came when Musk referenced Trump’s alleged connection to Jeffrey Epstein:
“Trump appears in the Epstein files. That’s the real reason they’ve never been released. Have a nice day, DJT.”
The insinuation added fuel to a long-simmering fire. Epstein, notorious for underage sex trafficking, died in custody in 2019 under mysterious circumstances. Trump had previously promised to release “the list” of high-profile visitors to Epstein’s island—often rumored to include Democrats.
Musk didn’t stop there. He shared a post suggesting Trump should be impeached and replaced by JD Vance, and launched a Twitter poll:
“Is it time for a new party in the U.S. that truly represents the middle 80%?”
Trump replied:
“I don’t care if Elon opposes me, but he should’ve said so months ago.”
The Fallout Continues
The shockwaves kept spreading. Steve Bannon, Trump’s former chief strategist, called for a full investigation into Musk—even suggesting deportation:
“I believe he’s an illegal immigrant. He should be expelled and all government contracts voided.”
Meanwhile, White House aides held emergency closed-door meetings to assess the fallout, according to financial news outlet Jintou.
Hedge fund manager Bill Ackman offered a sober take:
“Musk and Trump—together they thrive, apart they bleed.”
Musk replied simply:
“You’re not wrong.”
Analysts saw this as a potential cooling of tensions, but others weren’t so sure.
Crypto influencer Bruce J predicted:
“A peacemaker may step in. The bill might still pass with some spending cuts. Trump and Musk may call a truce publicly, but their personal relationship is permanently broken.”
Beyond a Feud: Political Ego Meets Market Risk
Whether this ends in a truce or a scorched-earth war, one thing is clear: this is no longer just a personal vendetta. It’s a high-stakes battle between two titans of power and capital—with real consequences for politics, markets, and global tech.
As one netizen summed it up:
“Neither of these guys is doing what grown men should do—control their emotions and shut their mouths.”