What began as a high-profile political partnership has now devolved into an all-out war of words between US President Donald Trump and Tesla CEO Elon Musk, with explosive allegations, economic fallout, and escalating personal attacks dominating headlines.
The feud intensified dramatically on Thursday, just days after Musk stepped down from his leadership role in the quasi-official Department of Government Efficiency. The turning point came when Musk publicly alleged that Trump’s name appears in the sealed Jeffrey Epstein files, accusing the president of hiding damning information from the public. The Tesla chief posted: “That is the real reason they have not been made public… Have a nice day, DJT!”
Tensions erupted earlier during an Oval Office press interaction with German Chancellor Friedrich Merz, where Trump lamented Musk’s abrupt shift, saying, “I’m very disappointed in Elon. He knew every aspect of this bill… I’ve helped Elon a lot.” Trump also accused Musk of reversing his stance only after leaving his government role.
Musk fired back on X, denying prior knowledge of the budget bill and accusing the administration of passing it “in the dead of night.” He also claimed Trump owed his electoral win to Musk’s influence and condemned the president’s “ingratitude.”
The battle soon spiraled into chaos. Trump threatened to strip Musk’s companies of government subsidies and contracts, prompting Musk to warn of decommissioning the Dragon spacecraft—essential to recent NASA missions—which could paralyze US space operations.
In a bold political move, Musk reposted a suggestion that Trump should be impeached and replaced by JD Vance, replying with a blunt “Yes.” He also criticized Trump’s proposed global tariffs, warning they would trigger a recession, and launched a poll on forming a new political party—actions likely to further aggravate the White House.
The economic consequences were immediate. Tesla’s stock plunged over 14% in a single day, wiping out approximately USD 152 billion in market value and costing Musk nearly USD 9 billion in personal wealth, according to Bloomberg.
Trump responded with a series of furious posts on Truth Social. He claimed to have asked Musk to leave the administration and boasted of revoking the EV mandate: “Elon was wearing thin… I took away his EV Mandate… and he just went CRAZY.” He also framed his controversial budget bill—dubbed the “big, beautiful bill”—as a historic tax cut and a remedy to national fiscal woes.
Musk rejected the claims outright, calling them “an obvious lie” in a repost of Trump’s statements. He amplified criticism from other users questioning Trump’s leadership and fiscal strategies.
As the political brawl rages on, experts warn the fallout could derail Trump’s key budget legislation, projected by the CBO to add $2.4 trillion to the deficit over the next decade. With Musk targeting not just Trump but also GOP leaders like Speaker Mike Johnson and Senate Majority Leader John Thune, the confrontation shows no signs of abating.
The once-influential alliance between the billionaire innovator and the political heavyweight has now transformed into a volatile clash—one that’s reshaping both Washington’s power dynamics and Wall Street’s confidence.
