Trump–Musk rift erupts in public row over power, policy, and spending

What began as one of Washington’s most curious partnerships has unravelled into a public and deeply personal feud. US President Donald Trump and billionaire entrepreneur Elon Musk are now openly trading barbs—an extraordinary breakdown of a once-strategic alliance that had positioned Musk as a central force in Trump’s second-term agenda.

US President Donald Trump, right, and Elon Musk, chief executive officer of Tesla Inc., during a news conference in the Oval Office of the White House in Washington, DC, US, on Friday, May 30, 2025. The event gives an opportunity for the president and his largest campaign benefactor to dispel any notion of an acrimonious divorce. Photographer: Francis Chung/Politico/Bloomberg via Getty Images
US President Donald Trump, right, and Elon Musk, chief executive officer of Tesla Inc., during a news conference in the Oval Office of the White House in Washington, DC, US, on Friday, May 30, 2025. The event gives an opportunity for the president and his largest campaign benefactor to dispel any notion of an acrimonious divorce. Photographer: Francis Chung/Politico/Bloomberg via Getty Images
Images source: © GETTY | Bloomberg

Key Points:

  • Strategic fallout: Trump threatens to sever federal ties with Musk’s companies amid a breakdown in relations.
  • Policy dispute: Musk’s criticism of Trump’s flagship spending bill triggers the rift.
  • Personal animosity: The row escalates into mutual accusations and reputational attacks.
  • Political aftershocks: Musk teases formation of new party; Tesla stock plunges.

The rupture came into sharp focus on Thursday, when President Trump threatened to terminate government contracts and subsidies awarded to Musk’s companies, including Tesla and SpaceX. Writing on Truth Social, Mr Trump claimed such a move would be the "easiest way to save billions in our Budget". He accused Musk of having "gone CRAZY" following the administration’s decision to scale back electric vehicle incentives.

Mr Musk, who had previously occupied an influential role leading the Department of Government Efficiency (DOGE), responded in real time on X—his social media platform—asserting that Mr Trump’s re-election would not have been possible without his financial and political backing. "Without me, Trump would have lost the election," he posted, noting his significant monetary support during the 2024 campaign.

At the centre of the fallout is the President’s controversial "One Big, Beautiful Bill"—a sweeping domestic policy package Musk denounced as fiscally reckless. The bill, already contentious among conservatives, phases out several clean energy provisions, including tax credits affecting Tesla. Trump dismissed Musk’s objections as self-serving, claiming the billionaire was upset about losing subsidies.

Yet the feud has spiralled well beyond policy. Mr Trump suggested Musk was exhibiting "Trump derangement syndrome" and implied the tech mogul longed to return to the Oval Office. Musk, in turn, hinted at forming a new centrist political movement and began publicly criticising top Republican figures. The implications were immediate: Tesla shares tumbled, and murmurs of internal Republican discord gained fresh momentum.

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