The Trump-Musk Feud : The once-unbreakable bromance between former President Donald Trump and tech billionaire Elon Musk has detonated into a public spectacle of threats, impeachments, and market chaos. In just 24 hours, their feud wiped $150 billion off Tesla’s market value, jeopardized U.S. space operations, and exposed fractures in the Republican Party’s donor base . Here’s how the war unfolded—and why it threatens more than just two egos.
The Spark: Policy Betrayal and the “Disgusting Abomination”
The rupture began when Musk, after resigning as head of Trump’s Department of Government Efficiency (DOGE) on May 30, launched a crusade against Trump’s “Big Beautiful Bill”—a sweeping tax-cut and spending package. Musk branded it a “disgusting abomination” on X (formerly Twitter), arguing it would inflate the U.S. debt by $2.4–$5 trillion . Trump initially stayed silent, but Musk escalated, repurposing the president’s old tweets against him:
- A 2013 Trump post criticizing Republicans for extending the debt ceiling (“Wise words,” Musk jabbed ).
- A 2012 tweet where Trump demanded term limits for Congress if deficits persisted (“Where is this guy today?” Musk taunted ).
Trump retaliated in the Oval Office on June 5, calling Musk “very disappointing” and suggesting his rage stemmed from the bill’s cuts to EV subsidies—a direct blow to Tesla’s profits. “Elon knew the inner workings of this bill […] All of a sudden he had a problem,” Trump sneered .
Thermonuclear Social Media: Impeachment, Dragon, and Market Collapse
Within hours, the feud went supernova across Truth Social and X:
- Trump’s Threat: “Terminate Elon’s Governmental Subsidies and Contracts” to save “Billions and Billions” .
- Musk’s Counterstrike: He agreed Trump “should be impeached” and threatened to decommission SpaceX’s Dragon spacecraft—the only U.S. vessel ferrying astronauts to the International Space Station .
- Tesla’s Crash: TSLA plunged 14.3% in a single day, erasing $150 billion in value—its worst drop ever. Trump Media & Technology Group (DJT) shares also slid .
Table: Tesla Stock (TSLA) Before and After Feud
| Date | Closing Price | Change | Volume |
|---|---|---|---|
| June 4, 2025 | $332.05 | -3.5% | 98.9M shares |
| June 5, 2025 | $284.70 | -14.26% | 287.5M shares |
| June 6 (AH) | $286.99 | +0.80% | After-hours |
Why Musk Turned: Egos, EV Mandates, and Existential Dread
Musk’s fury isn’t just fiscal—it’s personal:
- Credit Denied: He claimed Trump “would have lost” the 2024 election without his $300M in GOP donations .
- Policy Hypocrisy: Musk accused Trump of abandoning deficit hawkery, warning his tariffs would trigger a recession .
- Tesla’s Survival: The bill’s EV credit phaseout could cost Tesla $1.2B annually, compounding sales slumps from Musk’s political toxicity .
The Fallout: From Space to Silicon Valley
Government Contracts in Crosshairs
Trump’s threat to cancel Musk’s subsidies/contracts targets:
- SpaceX: A critical NASA partner. Musk’s Dragon threat—quickly walked back after investor pressure—highlighted U.S. space dependency .
- Regulatory Risk: Transportation Dept. investigations into Tesla’s Full Self-Driving tech could intensify as retaliation .
Republican Civil War
Musk’s “KILL THE BILL” campaign amplified GOP dissent, jeopardizing Senate passage. Worse for Trump:
- Musk’s influence with Silicon Valley donors and his 77M X followers could fracture 2026 midterm support .
- He floated creating a new centrist party, tweeting: “Is it time to create a political party that represents the 80% in the middle?” .
Tesla’s Mounting Crises
Beyond the stock crash:
- Brand Damage: 5–10% of Tesla’s reputation harm from Musk’s Trump era may be permanent. Protests slashed European sales by 50% in April .
- Autonomy Delays: Robotaxi dreams rely on regulatory goodwill—now in doubt .
- EV Winter: Subsidy losses + Rivian/Ford competition = perfect storm .
Cooling Off? Truce Signs Emerge
By June 5 evening, both sides blinked:
- Musk reversed Dragon’s decommission after an X user urged a “cool off” .
- He agreed with investor Bill Ackman that peace was wise (“You’re not wrong”) .
- White House aides scheduled a Trump-Musk call for June 6. Trump downplayed the fight: “It’s going very well, never done better” .
Why This Feud Reshapes Politics and Tech
- Social Media Dominance: Musk’s 600M X users dwarfed Trump’s 6.3M Truth Social base, letting him control the narrative .
- Investor Realpolitik: Tesla’s valuation (150x earnings) relies on Musk’s focus. His DC detour already sank TSLA 12% since January .
- Policy Vulnerability: EV and autonomy ambitions hinge on federal support. Musk’s war could isolate him—or force Trump to compromise.
The Unanswered Questions
- Will Musk fund anti-Trump Republicans in 2026?
- Can Tesla recover if the $7,500 EV credit vanishes?
- Is Dragon safe—or a bargaining chip?
Analyst Take: “Every benefit Musk was perceived to have [from Trump] now turns into a negative. It creates a force against Tesla.” — Ross Gerber, Tesla investor
Sources: Reuters | CNN | Yahoo Finance | Axios | People | LA Times