A public feud between Tesla CEO Elon Musk and former US President Donald Trump escalated sharply on Thursday, sending Tesla shares tumbling by 14.6% amid a swirl of political accusations, personal attacks, and explosive allegations.
The rift between the two influential figures erupted after Musk criticized the US tax and spending bill, branding it a misguided move. Trump responded by threatening to terminate government contracts with Musk’s companies, accusing him of lobbying for massive electric vehicle (EV) subsidies. Musk, who briefly served as head of the Department of Government Efficiency (DOGE) under the Trump administration, has since distanced himself from the former President.
In a series of explosive posts on X (formerly Twitter), Musk dropped a bombshell by alleging that Trump’s name is among those mentioned in the unreleased “Epstein files.” He wrote, “Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT.”
Musk followed up with another cryptic post: “Mark this post for the future. The truth will come out.”
The reference to disgraced financier Jeffrey Epstein, who died in jail in 2019 while facing charges of sex trafficking, reignited debates over transparency. Trump, along with other prominent figures such as Prince Andrew and former President Bill Clinton, has previously been linked to Epstein through court documents, though Trump has denied any association.
The Tesla CEO’s allegations came just minutes after Trump publicly threatened to terminate federal contracts with Musk’s companies. Responding to this, Musk announced that SpaceX would begin decommissioning its Dragon spacecraft. “In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately,” Musk posted on X.
Trump, speaking on his platform Truth Social, accused Musk of being upset over the EV mandate cuts and labelled his government subsidies “wasteful spending.” He said, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it.”
He also noted that Musk had previously endorsed him and supported his campaign. “I’m very disappointed in Elon. I’ve helped Elon a lot… He knew everything about this bill and never raised any concerns until now.”
Trump further alleged that Musk had lobbied to appoint a Democrat to lead NASA — a request the former president declined. “He wanted someone to run NASA, but I didn’t think it was appropriate,” Trump said.
In response, Musk fired back on X, calling Trump’s claims “false” and accusing him of withholding the bill until it passed “in the dead of night.” He also slammed Trump for “ingratitude,” writing, “Without me, Trump would have lost the election, Dems would control the House, and Republicans would be 51-49 in the Senate.”
The spat has rattled investors, contributing to Tesla’s sharp stock decline. Market analysts have noted that Tesla’s value is increasingly being impacted by Musk’s political entanglements.
Adding to the political drama, Musk also floated the idea of launching a new political party, conducting a poll asking Americans if the country needs “a party that actually represents the 80% in the middle.”
Musk, who reportedly spent at least $250 million supporting Trump’s previous campaign, has now openly broken ranks. His departure from the Trump administration and the high-profile fallout marks a dramatic turning point in the relationship between two of America’s most powerful and controversial figures.
