What began as a high-profile friendship between Donald Trump and Elon Musk has now devolved into a bitter and very public war, marked by personal jabs, political threats, and financial fallout. In less than a week, the once-close alliance between the US President and the billionaire entrepreneur has completely unraveled—culminating in allegations, policy retaliation, and billions lost in Tesla’s market value.
From political ally to presidential advisor
The Donald Trump-Elon Musk relationship reached its peak during Donald Trump’s 2024 presidential campaign. Following an assassination attempt in July 2024, Elon Musk offered his full support to Donald Trump and joined him on the campaign trail wearing a “Make America Great Again” cap. After Donald Trump returned to the White House, he brought Elon Musk in as an unpaid presidential advisor under the “special government employee” category.
Their bond deepened as Elon Musk became the face of the new Department of Government Efficiency (DOGE), where he pushed for aggressive cost-cutting measures. Elon Musk even publicly professed admiration for Donald Trump, once writing on X, “I love @realDonaldTrump as much as a straight man can love another man.”
The relationship remained strong until late May 2025, when Donald Trump, during his final Oval Office press conference, called Elon Musk “one of the greatest business leaders and innovators the world has ever produced.” Just days later, everything began to unravel.
A spending bill breaks the bond
The tension started when Elon Musk criticized the Donald Trump administration’s latest legislative effort, calling it a “disgusting abomination” due to its size and financial implications. On June 3, he slammed the so-called “One Big Beautiful Bill” on social media, accusing it of reversing the cost-saving reforms he had helped implement through DOGE.
Things escalated rapidly. On June 5, Donald Trump accused Elon Musk of opposing the bill only because it removed electric vehicle tax credits—something that could significantly hurt Tesla’s profits. “Elon and I had a great relationship. I don’t know if we will any more,” Donald Trump told reporters.
Elon Musk hit back, claiming he was never shown the bill before its passage and calling out Donald Trump’s administration for pushing it through “in the dead of night.” He then took a shocking turn by invoking Donald Trump’s alleged ties to Jeffrey Epstein and posting an old Donald Trump quote referring to Epstein’s young female associates.
The fallout became more explosive when Elon Musk floated the idea of launching a centrist political party, endorsed Donald Trump’s impeachment, and backed JD Vance as a potential replacement. He also warned that Donald Trump’s global tariff policy would trigger a recession.
In retaliation, Donald Trump threatened to strip Elon Musk’s companies of federal subsidies and contracts. Tesla shares tanked by over 14% in a single day, wiping out $152 billion in market value and slashing Elon Musk’s personal wealth by $8.73 billion, according to Bloomberg.
Taking to Truth Social, Donald Trump accused Elon Musk of betrayal and claimed he had asked Elon Musk to leave before things turned sour. “The easiest way to save money in our Budget… is to terminate Elon’s Governmental Subsidies and Contracts,” he added, signaling that the feud was far from over.
