The alliance between Elon Musk and President Donald Trump has unraveled in spectacular fashion, sending shockwaves through both Wall Street and Washington. The feud, which erupted publicly last week, began when Musk sharply criticized Trump’s sweeping tax and spending bill, calling it a “disgusting abomination” and warning it would balloon the national debt Trump responded by threatening to strip Musk’s companies—Tesla and SpaceX—of lucrative federal contracts and subsidies, a move that triggered a historic 14% plunge in Tesla’s stock, wiping out $150 billion in value in a single day.
The dispute quickly turned personal. Musk, once a key Trump advisor and major GOP donor, claimed Trump would not be in the White House without his support, while Trump dismissed Musk’s influence and questioned the future of their relationship The rhetoric escalated further when Musk referenced Trump’s name in connection with Jeffrey Epstein files, a claim he later deleted, but which drew swift condemnation from the White House.
Trump has since warned Musk of “serious consequences” if he supports Democratic candidates in the upcoming midterms, signaling a permanent end to their partnership With both men wielding significant political and financial power, their fallout is raising questions about the future of major federal contracts, the direction of Republican policy, and the stability of Musk’s business empire. As the feud continues, the stakes for Silicon Valley, the White House, and the 2026 elections have never been higher.
