Not long ago, U.S. President Donald Trump and billionaire Elon Musk seemed to share a strong public camaraderie. They were often seen together at events, collaborated on interviews, and spoke highly of each other. However, that apparent bond fractured suddenly, spiraling into a very public and bitter feud that now threatens political alliances and business interests.
The rift erupted when Trump publicly attacked Musk for his criticisms of the Republican tax-cut and spending bill. The situation escalated rapidly, unfolding through dueling posts on Trump’s Truth Social platform and Musk’s X (formerly Twitter), capturing national attention and drawing reactions from business leaders and politicians alike.
The conflict soon turned aggressive. Trump reportedly threatened to withdraw billions in government contracts awarded to Musk’s businesses. In retaliation, Musk implied that Trump owed his past electoral success to his support, stating that Trump “could not have won the election without him.”
As the feud became a national spectacle, several high-profile individuals attempted to intervene or weigh in. Billionaire hedge fund manager Bill Ackman, the CEO of Pershing Square Capital Management, publicly urged the two men to reconcile for the country’s sake. Posting on X, Ackman said, “We are much stronger together than apart.” Musk responded briefly: “You’re not wrong.”
U.S. Congressman Jim Jordan, speaking on Fox News’ Laura Ingraham show, also expressed hope for a reconciliation between Trump and Musk, while defending the contested budget bill that had triggered Musk’s initial criticism. But not all of Trump’s allies shared Jordan’s conciliatory tone.
Former Trump adviser Steve Bannon, who has had his own recent clashes with Musk, took a far more aggressive stance. On his “War Room Live” show, Bannon called for Trump to invoke the Defense Production Act — a national security law — to seize control of SpaceX. “The U.S. government should seize it,” Bannon declared, also urging the administration to revoke Musk’s security clearance and freeze all federal contracts with his companies pending an investigation.
Congressman Thomas Massie, a Republican known for his independent streak and previous opposition to Trump’s budget plans, pointed out the inherent clash in personalities. On X, he remarked, “The falling out was inevitable. You don’t land rockets backwards or get cars to drive themselves by suffering fools gladly.”
As the feud dominated headlines, others began floating new political concepts. Billionaire investor Mark Cuban appeared to back a suggestion Musk had posted in a poll — the formation of a new political party that would represent the “80% in the middle” of the American political spectrum. Former presidential candidate Andrew Yang joined the discussion, reposting Cuban’s endorsement and later proposing an “Independent ‘28 presidential primary” that could include figures like Cuban, JPMorgan CEO Jamie Dimon, and actor Matthew McConaughey.
The ripple effects of the Trump-Musk feud weren’t confined to the U.S. European officials also chimed in. Polish Foreign Minister Radosław Sikorski, who had previously sparred with Musk and U.S. Secretary of State Marco Rubio over the role of Musk’s Starlink satellite service in Ukraine, took a swipe at the tech mogul. Referencing Musk’s earlier insult in which he told Sikorski to “Be quiet, small man,” the Polish minister retorted on X, “See, big man, politics is harder than you thought.”
Thierry Breton, the former European Union leader for digital policy and a previous critic of Musk, posted a cryptic combination of emojis — eyes and popcorn — suggesting he was watching the Musk-Trump drama unfold with interest.
Meanwhile, Ian Bremmer, president of the political risk consultancy Eurasia Group, gave a blunt assessment on X: “Trump is more powerful than elon, but far less competent.”
The feud also triggered massive turmoil in the financial world, particularly for Tesla, Musk’s flagship electric vehicle company. Spooked investors began selling off Tesla stock rapidly, sending its value plunging by more than 14% and wiping out a staggering $152 billion in market capitalization.
Dan Ives, managing director and senior equity research analyst at Wedbush Securities, noted in a research brief that the public conflict had rattled markets. “The conflict was jaw dropping and a shock to the market,” he wrote, adding that the feud “creates major fear for Tesla investors.”
Ives further explained the potential implications for Tesla: “Tesla’s stock is under major pressure down 15% as investors fear that this Musk/Trump battle will stop their friendship and change the regulatory environment for Tesla on the autonomous front over the coming years under the Trump Administration.” Still, he emphasized that Wedbush remained bullish on Tesla long-term, though he admitted the situation “clearly does put a fly in the ointment of the Trump regulatory framework going forward.”
Other Tesla supporters were less optimistic. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a well-known Tesla investor, criticized Musk sharply. In a series of posts on X, he wrote that Musk was “now attacking all the people he helped put in power.” Gerber continued: “Elon going postal on Trump and tesla stock is getting walloped. Trump will be returning his new tesla and is saying he got musked. All this can’t be good for shareholders. But hey, who cares about us.”
Gary Black, managing director at the Future Fund added to the pessimism. Black, whose firm recently sold all of its Tesla shares, commented that the feud would create further downward pressure on the stock. “These same bulls argued for months that the Musk-Trump alliance would streamline the federal process allowing TSLA to secure general unsupervised autonomy license nationally. That prospect is now highly unlikely.”
The dramatic deterioration in relations between Musk and Trump — once seen as mutual power brokers with influence over tech and politics alike — now poses uncertain risks for both figures. For Musk, the potential loss of regulatory favor and political alliances could hamper Tesla’s ambitious plans in autonomy and federal contracts for SpaceX. For Trump, alienating a high-profile tech magnate risks splintering support among moderate conservatives and business leaders ahead of a pivotal election.
What began as a disagreement over fiscal policy has ballooned into a fierce standoff with implications far beyond partisan politics. With influential voices urging a truce and the markets reeling, it remains unclear whether the damage can be undone — or if this feud marks a new chapter of political and corporate rivalry.