The once-unbreakable bond between former President Donald Trump and tech billionaire Elon Musk has disintegrated into a spectacular public feud, rattling Wall Street and Washington alike. This clash of titans reached new heights on July 1, 2025, when Trump threatened to unleash the Department of Government Efficiency (DOGE) – an agency Musk himself created – against his companies, warning that “DOGE is the monster that might have to go back and eat Elon”. The dramatic rupture between America’s most powerful politician and its wealthiest entrepreneur has triggered a $150 billion Tesla stock plunge, exposed the fragility of public-private partnerships, and revealed how personal grievances can threaten national infrastructure.
From Bromance to Battle: The Relationship’s Unraveling
The Trump-Musk alliance began as one of 2024’s most powerful political partnerships. After Trump survived an assassination attempt in July 2024, Musk publicly endorsed him, later contributing $290 million to his campaign through the America PAC. Their “bromance” flourished post-election, with Musk appointed to lead DOGE – a new agency tasked with slashing government waste. Trump celebrated Musk at his inauguration, proclaiming, “We have a new star. A star is born. Elon!” and even turned the White House lawn into a Tesla showroom in March 2025.
The fracture began subtly. By April, Trump stopped regularly posting about Musk after previously mentioning him six times weekly. The first public crack appeared on May 27 when Musk criticized Trump’s “One Big Beautiful Bill” in a CBS interview, arguing it increased deficits and undermined DOGE’s work. The situation deteriorated rapidly when Trump abruptly withdrew the NASA nomination of Jared Isaacman, Musk’s ally, on May 30 – a move perceived as a “last insult” against Musk.
The $3.3 Trillion Breaking Point
The feud exploded on June 3 when Musk called Trump’s signature legislation a “disgusting abomination” overflowing with pork spending. The Congressional Budget Office estimated the bill would add $3.3 trillion to the deficit over the next decade, directly contradicting Musk’s DOGE mission to reduce wasteful spending. Musk launched an X campaign against lawmakers supporting the bill, vowing: “They will lose their primary next year if it is the last thing I do on this Earth”.
Trump retaliated by weaponizing Musk’s dependence on government support, noting: “Elon may get more subsidy than any human being in history, by far”. The president specifically targeted Tesla’s $7,500 EV tax credit (worth $1.2 billion annually) and $8 billion in regulatory credits sold over six years. JPMorgan analysts warned these cuts could cost Tesla $3.2 billion yearly, potentially forcing production shutdowns.
Nuclear Options and Market Fallout
The conflict reached nuclear levels on June 5 when Musk:
- Accused Trump of being named in Epstein’s files
- Called for Trump’s impeachment
- Threatened to decommission SpaceX’s Dragon spacecraft – America’s only crewed vehicle to the International Space Station
Tesla stock plummeted 14% on June 4 alone, erasing $150 billion in market value. When the feud reignited on July 1, shares tumbled another 7%, underperforming amid broader market highs. Wedbush analyst Dan Ives described the situation as “a soap opera overhanging Tesla’s stock,” with investors fearing regulatory retaliation against Musk’s empire.
The Dependency Dilemma
The standoff exposes America’s dangerous reliance on private contractors for critical infrastructure:
- SpaceX holds $22 billion in federal contracts and provides exclusive ISS transport
- Tesla benefits from EV policies shaping consumer markets
- Starlink now operates at the White House
As The Guardian noted, “The messy, public way that the clash has played out serves as a reminder of how unpredictable their decision-making can be”. Musk’s impulsive threat to decommission Dragon spacecraft – later retracted after an X user advised him to “cool off” – demonstrated how essential services could become collateral in personal disputes.
Political Repercussions and the “America Party”
The rupture carries seismic political implications. Musk has:
- Pledged support for Trump critic Rep. Thomas Massie
- Floated creating an “America Party” for the “80% in the middle”
- Vowed to fund primary challenges against bill supporters
Trump has countered by questioning Musk’s loyalty and even floating deportation: “I don’t know. We’ll have to take a look”. Behind the theatrics lies a substantive divide: Musk claims ideological opposition to deficit spending, while Trump insists Musk merely resents losing EV subsidies.
The High-Stakes Standoff
With Tesla’s Q2 sales already sliding in Europe amid Musk’s political controversies, and SpaceX facing contract uncertainty, both men wield mutually destructive power. Trump controls the regulatory environment sustaining Musk’s empire, while Musk commands resources to disrupt Republican primaries. As one White House official noted, “Ultimately, Donald Trump is president, and Musk is not”.
Their feud represents more than a billionaire’s spat – it demonstrates how privatized public infrastructure creates vulnerabilities when corporate and state interests collide. The DOGE monster may yet turn on its creator, but as Musk defiantly tweeted: “I am literally saying CUT IT ALL. Now” . In this high-stakes game of chicken between two of the world’s most powerful men, America’s technological future hangs in the balance.