The once-close relationship between US President Donald Trump and tech billionaire Elon Musk has erupted into a full-scale public meltdown, marked by bitter accusations, threats of contract cancellations, and a staggering stock market fallout.
The feud, which began over a controversial federal budget bill, escalated dramatically this week as Musk accused Trump of appearing in sealed Jeffrey Epstein files—without providing any evidence—and Trump fired back by threatening to cut all government ties with Musk’s companies.
The public brawl had immediate financial consequences. Tesla shares plunged 14.2% on Thursday, wiping out around $152 billion in market capitalisation and reducing the company’s valuation to roughly $900 billion. According to the Bloomberg Billionaires Index, Musk’s personal net worth dropped by approximately $8.73 billion in a single day.
The falling-out came to a head on Thursday as Trump met German Chancellor Friedrich Merz at the White House. Speaking to reporters in the Oval Office, Trump said he was “very disappointed in Elon,” noting, “He knew every aspect of this bill. He knew it better than almost anybody, and he never had a problem with it until right after he left. I’ve helped Elon a lot.”
Trump added that he was surprised by Musk’s sudden opposition, given their previously “great relationship.” He speculated that Musk’s criticism may have been driven by the bill’s proposal to end tax credits for electric vehicles, which could affect Tesla.
Later, on his Truth Social platform, Trump claimed Musk “just went crazy” after “I took away his EV mandate” and accused the billionaire of being ungrateful.
Musk responded on X , saying: “False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!”
The Tesla CEO insisted his opposition was based on concerns about rising federal deficits, writing: “Congress is spending America into bankruptcy.”
But Musk didn’t stop there. In a series of increasingly personal posts, he claimed without evidence that Trump’s name appeared in the sealed Epstein files: “Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public."
In retaliation, Trump threatened to sever Musk’s substantial government contracts and subsidies. “The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon’s governmental subsidies and contracts,” Trump wrote online. “I was always surprised that Biden didn’t do it!”
Musk has reportedly spent at least $250 million supporting Trump’s re-election campaign and recently served as head of the Department of Government Efficiency (DOGE), a role from which he officially stepped down last week.
The drama took another twist when Steve Bannon, a longtime Trump ally and vocal Musk critic, called for a formal probe into Musk’s citizenship status. Speaking to The New York Times, Bannon said: “They should initiate a formal investigation of his immigration status… I am of the strong belief that he is an illegal alien, and he should be deported from the country immediately.”
All this comes as Musk faces mounting challenges in China—Tesla’s second-largest market—where competition from local electric vehicle makers has intensified. Sales of the company’s Model 3 and Model Y vehicles in China declined for the eighth consecutive month, dropping 15% year-on-year in May, according to the China Passenger Car Association.
Once viewed as allies shaping a pro-business agenda from within the White House, Trump and Musk now appear to be locked in a bitter and personal struggle, with no signs of reconciliation. As their feud intensifies, it is drawing in not just social media followers and political allies but also markets, regulators, and global headlines.
With impeachment talk, contract threats, and explosive allegations flying, one thing is clear: the Trump–Musk bromance is well and truly over.
