In a public clash that stunned political observers, President Donald Trump and billionaire Elon Musk traded sharp insults on Thursday, June 5, 2025, in Washington, D.C., marking the breakdown of an alliance that has shaped recent American politics. The conflict, which exploded on social media, was triggered by Musk’s fierce criticism of a priority bill from Trump, known as the “One Big Beautiful Bill,” which proposes tax cuts, increased military spending, and reductions in clean energy incentives. The exchange of barbs included accusations of ingratitude and Trump’s threats against federal contracts held by Musk’s companies, such as Tesla and SpaceX. The dispute, which intensified throughout the day, raises questions about the future of relations between the government and the tech sector.
The disagreement gained traction when Musk, who invested approximately $290 million in Trump’s 2024 campaign, labeled the bill a “repugnant abomination.” Trump responded by claiming Musk suffered from “Trump derangement syndrome” and suggested his opposition stemmed from the elimination of tax credits for electric vehicles, directly impacting Tesla. The feud, which began with policy disagreements, escalated into personal attacks, with Trump questioning Musk’s sanity and Musk retorting that the president would not be in office without his financial and media support.
This exchange of accusations comes less than a week after Musk officially stepped down from his role at the Department of Government Efficiency (DOGE), where he led efforts to reduce federal spending. His departure, announced on May 29, marked the end of his tenure as a special government employee, though he vowed to continue as an “advisor” to Trump. However, the cordial tone of the farewell contrasted sharply with the recent hostility, highlighting tensions that had been brewing behind the scenes.
- Key points of the conflict:
- Musk criticized the bill for increasing the federal deficit by $2.4 trillion over a decade.
- Trump threatened to cancel billions in contracts and subsidies for Musk’s companies.
- Tesla lost 15% of its market value in a single day, equivalent to $150 billion.
- Musk suggested creating a new political party to represent “the 80% in the center.”
The escalation of the conflict reflects a relationship that, while powerful, was always under strain due to the strong personalities of both figures. Since the start of Trump’s administration, analysts noted that the White House might not be big enough to accommodate the egos of two billionaires accustomed to leading without opposition.
Origin of the legislative dispute
The spark for the confrontation was the bill dubbed “One Big Beautiful Bill,” which passed the House of Representatives by a single vote. The legislation, a top priority for Trump, combines significant tax cuts, increased spending on border security and the military, and reductions in social programs like Medicaid and food assistance. However, the most contentious issue for Musk was the elimination of a $7,500 tax credit for electric vehicle buyers, a measure that directly benefits Tesla.
Musk, who for months led efforts to cut federal spending, saw the bill as a contradiction to the efficiency principles he championed at DOGE. In a series of posts on the X platform, he accused the bill of being passed “in the dead of night” and claimed he was not shown its details beforehand, despite Trump’s assertion that Musk knew them “better than anyone.” Musk’s criticism extended beyond fiscal policy; he also questioned Republican leadership, including House Speaker Mike Johnson, whom he called a hypocrite for supporting a package that increases the national debt.
Johnson’s response was swift. In a post on the same platform, he defended his consistency as “fiscally responsible” and highlighted that the bill includes the largest cut to mandatory spending in history, alongside robust investments in security. The exchange between Musk and Johnson illustrates the division within the Republican Party, with some members attempting to distance themselves from the feud while others back Trump’s agenda.
Market and political reactions
The financial impact of the conflict was immediate. Tesla’s stock plummeted 15% on Thursday afternoon, slashing its market value by over $150 billion. The drop reflects investor concerns over Trump’s threats to cut federal contracts for Musk’s companies, which include $3 billion in agreements with 17 agencies, primarily for SpaceX. One of the most critical contracts is SpaceX’s deal with NASA, which relies on the Dragon spacecraft to transport astronauts to the International Space Station.
Musk responded to the threats with sarcasm, stating that SpaceX could begin phasing out the Dragon immediately, a move he claimed would “make things even better.” The provocation heightened perceptions that the billionaire is willing to escalate the conflict, even at the expense of his companies. Additionally, he suggested in a poll on X the creation of a new political party, asking whether it was time to represent “the 80% in the center” of the American population, signaling his frustration with the current political system.
In Congress, reactions were cautious. Republican senators like John Kennedy and Markwayne Mullin avoided taking sides, with Kennedy stating, “You never get between a dog and a fire hydrant.” Senate Majority Leader John Thune also dodged the issue, saying he had “no observations” on the matter. The reluctance to engage reflects the political weight of both figures: Trump as the party leader and Musk as an influencer with over 220 million followers on X.
History of tensions
While the feud erupted publicly on June 5, signs of friction between Trump and Musk were evident months earlier. In March, Musk clashed with Secretary of State Marco Rubio during a Cabinet Room meeting, accusing Rubio of not cutting enough staff. The incident, reported by sources close to the matter, highlighted Musk’s aggressive approach to reducing bureaucracy, which often clashed with government officials.
Another episode occurred in April, when Musk criticized Trump’s trade advisor, Peter Navarro, calling him an “idiot” in a dispute over tariffs. These clashes suggest that the relationship between Musk and the Trump administration was always marked by disagreements, despite their initial collaboration. Musk’s appointment to lead DOGE in January 2025 was seen as an attempt to harness his influence, but his abrupt exit and subsequent criticisms indicate that the partnership could not withstand their differing visions.
- Key moments in the Trump-Musk relationship:
- January 2025: Musk takes leadership of DOGE, pledging to cut $1 trillion from the federal budget.
- March 2025: Clash with Rubio exposes internal tensions in the administration.
- April 2025: Musk publicly attacks Navarro, criticizing tariff policies.
- May 2025: Musk leaves DOGE but vows to remain an advisor.
- June 2025: Public conflict erupts over the bill.
Impact on Musk’s companies
Musk’s companies, particularly Tesla and SpaceX, are at the heart of the storm. Tesla, already facing market volatility, saw its valuation drop from $1 trillion to $916 billion after the conflict. Analysts note that the elimination of electric vehicle tax credits could reduce the company’s competitiveness, especially in a market where competitors like Ford and GM also rely on incentives.
SpaceX, on the other hand, faces even greater risks. The company is a major contractor for the U.S. government, with agreements supporting critical space missions. Trump’s threat to cancel these contracts, worth billions of dollars, could jeopardize operations like NASA’s Artemis program, which aims to return to the Moon. Musk, however, appears willing to challenge the government, suggesting that SpaceX could operate without federal contracts.
Repercussions in American politics
The conflict between Trump and Musk is not just a personal feud; it has profound implications for the American political landscape. Musk, who spent nearly $290 million supporting Trump and other Republicans in 2024, was seen as a bridge between the political establishment and Silicon Valley. His departure from the government and public criticisms of the bill signal a breakdown of that alliance, which could complicate Republican efforts to maintain control of Congress in the 2026 midterm elections.
Moreover, Musk’s influence on X, where he has over 220 million followers, gives him a powerful platform to shape public opinion. His recent posts, including the suggestion of creating a new party, indicate he may seek a more independent role in American politics. This possibility concerns Trump’s allies, who fear that the division could weaken the Republican Party at a critical moment.
The Trump tariffs will cause a recession in the second half of this year https://t.co/rbBC11iynE
— Elon Musk (@elonmusk) June 5, 2025
White House response
The White House sought to downplay the conflict’s impact, with an anonymous official stating that “the president made it clear that the White House is not subordinate to Elon Musk on policy matters.” The statement reflects Trump’s attempt to reassert his authority, especially after Musk claimed he was responsible for the president’s electoral victory. However, the absence of a direct response from Trump following Musk’s latest provocations suggests the administration is cautious about how to handle the billionaire.
The feud also exposed divisions within Trump’s team. While some advisors view Musk as a threat to government cohesion, others recognize his importance as a financier and influencer. Musk’s appointment to DOGE, though temporary, was an acknowledgment of his power, but his exit and subsequent criticisms show that the relationship was more fragile than it appeared.
Uncertain future scenario
The future of the Trump-Musk relationship remains uncertain. While Trump focuses on advancing his legislative agenda in the Senate, where the bill faces resistance from fiscally conservative Republicans, Musk appears determined to maintain his public opposition. His posts on X, including references to alleged Jeffrey Epstein files, suggest he is willing to escalate the conflict beyond legislative issues.
In Congress, the feud is being closely watched. Republicans like Ted Cruz, who previously defended Musk, now face the challenge of balancing loyalty to Trump with the billionaire’s influence. The possibility of Musk reducing his political funding, as he recently hinted, also worries the party, which relies on major donors to compete in future elections.
The clash between Trump and Musk marks a turning point in American politics, where powerful personalities collide in a highly visible arena. The resolution of this conflict, or its escalation, will depend on the next moves of both figures, but the impact is already clear: the alliance that helped shape Trump’s 2024 victory is irrevocably shaken.
