The public feud between President Donald Trump and tech billionaire Elon Musk has escalated from a mere disagreement into a significant clash that threatens stock markets, government contracts, and public trust. It highlights the detrimental impact of personal conflicts among influential figures on the economy and government operations.
Initially, the relationship between Trump and Musk appeared strong. Musk supported Trump’s 2024 campaign with a hefty contribution of $250 million and took on the role of head of the Department of Government Efficiency. This partnership allowed Musk to influence government regulations affecting his businesses, while Trump gained access to Musk’s considerable financial resources and his substantial following of 220 million on X. In February 2025, Musk admired Trump, stating, “I love @realDonaldTrump as much as a straight man can love another man,” indicating a close bond.
However, tensions mounted when Musk criticized Trump’s main tax bill as a “disgusting abomination” that would significantly increase the national debt. Trump expressed his “great disappointment” with Musk during a meeting with German Chancellor Friedrich Merz, igniting further conflict. Musk retaliated by posting “Whatever” to his followers and asserting, “Without me, Trump would have lost the election.” He even suggested that Trump should face impeachment and made allegations regarding Trump’s connections to the Jeffrey Epstein files.
The fallout from their feud was immediate and severe. Tesla’s stock plummeted more than 14% in a single day, resulting in a staggering loss of about $150 billion, the most significant single-day decline in the company’s history. Dan Ives of Wedbush described the situation as “jaw-dropping and a shock to the market,” emphasizing that Tesla was under “major pressure” as investors feared the fallout from the broken friendship could disrupt regulatory frameworks affecting the company. Additionally, shares of Trump Media fell by 8%, while Trump’s cryptocurrency declined by 12%, underscoring how elite disputes can reverberate through various investments.
The conflict poses a significant threat to Musk’s business empire, particularly concerning SpaceX’s $22 billion in government contracts. Trump’s threat to “terminate Elon’s governmental subsidies and contracts” carries weight, given the president’s control over federal spending. SpaceX’s Dragon spacecraft is the only American vehicle capable of transporting astronauts to the International Space Station, giving Musk leverage in the ongoing dispute.
Justus Parmar of Fortuna Investments noted that losing government contracts “wouldn’t be catastrophic,” it would undoubtedly lead to “significant lost revenue.” The feud has compelled investors to reconsider how political relationships influence business valuations, as many have realized that Tesla’s stock had benefited from the Trump-Musk alliance.
This discord generates uncertainty regarding government regulations affecting electric vehicles, space technology, and social media. Trump’s insinuation that Musk opposes electric vehicle policies reveals how personal conflicts can sway decisions impacting entire industries. Musk’s threat to shut down the Dragon spacecraft could “likely disrupt the ISS program, which involves dozens of countries,” potentially tarnishing America’s standing as a reliable international partner.
Furthermore, the conflict threatens to fracture the Republican Party’s unity. Democratic strategist Liam Kerr remarked, “Any move he makes toward Democrats is detrimental to Republicans.” Former Trump advisor Steve Bannon even suggested that the president should “seize” SpaceX, illustrating the divisions emerging among Trump’s supporters.
Ian Bremmer of Eurasia Group voiced concerns regarding leadership dynamics, noting, “Trump is more powerful than Elon, but far less competent.” This reflects broader apprehensions about whether personality-driven politics can sustain stable governance.
The breakdown between Trump and Musk underscores the dangers of relying on personal relationships rather than stable institutions for government and business partnerships. As Tom Hulick of Strategy Asset Managers pointed out, while focusing on business fundamentals is necessary, “two individuals clashing as fiercely as Trump and Musk are currently” fosters market uncertainty that ultimately affects ordinary investors and government initiatives.
Reporting by The Congress Post’s Washington Bureau, with contributions from Zoe Patel (electoral politics), Olivia Bennett (political polling), and Victoria Hayes (congressional affairs).