From Allies to Adversaries

Just months ago, Elon Musk and Donald Trump were firmly aligned—Musk served as chief advisor to Trump’s newly formed Department of Government Efficiency (DOGE), championing deregulation and governmental streamlining. Trump publicly praised Musk’s role, calling it a “big win for efficiency”

But signs of a split appeared in early June 2025. Musk lambasted Trump’s “One Big Beautiful Bill”—a high-spending, tax-cut package—on X, decrying it as a “disgusting abomination” that ballooned the federal deficit. Notably, the bill also scaled back electric-vehicle tax credits, directly undermining Tesla’s bottom line

 🔥 Trump Unloads: “Very Disappointed” and a $Billions Threat

In response, Trump lashed out in the Oval Office, calling Musk “very disappointed” and saying, “Elon was wearing thin, I asked him to leave”. He went on Truth Social to threaten Musk’s empire:

“The easiest way to save money … is to terminate Elon’s government subsidies and contracts.

He singled out Musk’s federal subsidies, warning of cancelling SpaceX and Starlink deals, potentially cutting tens of billions in revenue—spurring a swift stock drop

 📉 Market Impact: Tesla and SpaceX in the Crosshairs

Trump’s rhetoric came with consequences. Tesla shares plunged over 14%, wiping out roughly $150 billion in market capitalization and erasing nearly $20 billion from Musk’s net worth. The attack wasn’t just verbal—it rattled investors and darkened Tesla’s near-term outlook.

 🛑 The Shift from Praise to Hostility

Earlier, Trump had heaped praise on Musk, acknowledging the billionaire’s crucial campaign backing—“Without me, Trump would’ve lost the election,” Musk retorted on X. But as DOGE’s reforms stalled—DOE missteps, misaligned budgeting—the admiration turned to disdain.

Now, Trump brands Musk “hostile” and questions his loyalty, claiming Musk abandoned their shared vision

🎭 Political Implications: A Rogue Billionaire?

Musk’s pivot merits political concern. Analysts note Republican lawmakers are uneasy, wary of alienating either Trump or Musk—both still commanding massive influence. Bannon even urged Trump to investigate Musk’s immigration, security clearances, and business ties to China

This potent mix of personal feud and political leverage makes Musk a wild card in Washington.

 🧠 Trump’s Terrified Motivation

So, what terrifies Trump?

Musk’s financial muscle: Having sunk nearly $290 million into Trump-aligned campaigns, Musk has since hinted at reallocating those resources—possibly to Democrats—if the spending bill goes through

Defense contracts: SpaceX and Starlink depend on billions from government contracts. Trump threatened to pull that safety net

Public influence: Musk dominates both technology and media via X—once seen as reinforcing Trump’s grip on public attention, but now a platform for open criticism

 🔮 What’s Next? Escalation or Truce?

Contract retaliation: Donald Trump continues to pressure Musk’s government deals, even hinting at nationalization of Musk assets—a serious escalation

Public smear campaign: High-profile partisan advisors are mobilizing dossiers on Musk’s alleged ethics and security threats.

Musk stays defiant: He’s publicly antagonistic, provoking further backlash: “Go ahead, make my day.”

 👥 Broader Fallout

Investors on edge: Tesla shareholders now face political volatility alongside market risks.

Regulatory uncertainty: Threats to pull SpaceX contracts could ripple through national defense and satellite communications.

Media narrative evolves: Instead of synergy, we’re witnessing rival alpha males, each vying for dominance.

🧩 Verdict: A Dangerous New Arena

What began as camaraderie built on shared ambitions—reining in bureaucracy, boosting tech—has devolved into a full-blown clash. Trump is terrified of losing both influence and leverage, while Musk is proving he’s his own man, unafraid to counter even past allies.

The result? Two titans in open conflict, with Tesla, SpaceX, and X caught in the crossfire.

🔑 Key Takeaways

Trump weaponized spending: Federal contracts and subsidies can now be used as political leverage.

Musk’s independence scares T‑world: His firing back marks a departure from mutual dependency.

Stock markets reacted fast: Tesla plunged, and volatility remains high.

Future uncertain: With weapons primed on both sides, escalation seems likely—and so do market shocks.