A public war of words between President Donald Trump and Tesla CEO Elon Musk exploded into a political and financial firestorm this week—threatening Musk’s government contracts, tanking Tesla stock, and stunning even close allies.
It all began when Musk publicly slammed Trump’s “big beautiful bill”, a massive legislative package that includes tax cuts, immigration enforcement, and industrial subsidies. Musk criticized the bill’s projected $2.4 trillion deficit impact, calling it “fiscally reckless” on X (formerly Twitter).
In response, Trump threatened to revoke government contracts held by Musk’s companies—including SpaceX, Tesla, and Neuralink—blasting Musk as “ungrateful” and “disloyal.”
“Maybe it’s time we stopped giving taxpayer money to a guy who only knows how to whine,” Trump posted on Truth Social.
The fallout: Markets react, Musk loses billions
The feud quickly escalated beyond words.
Tesla shares plunged 14.3% on Thursday in New York, wiping out approximately $150 billion in market value. Elon Musk personally lost $27 billion from his net worth in a single day, according to Forbes.
Wall Street was rattled not just by the personal spat, but by its real policy implications—including potential cuts to:
- EV subsidies under Trump’s industrial policy
- SpaceX defense and NASA contracts
- Federal infrastructure projects involving Tesla battery tech
For many investors, it marked a rare moment where politics and personality directly collided with market performance.
How the feud unfolded (in short)
- June 2: Musk tweets criticism of Trump’s spending bill.
- June 3: Trump replies on Truth Social, calling Musk a “fraud” who “owes his fortune to government handouts.”
- June 4: White House aides reportedly urge Trump to cool tensions; Musk calls for “financial responsibility in Washington.”
- June 5: Trump threatens to revoke Musk’s federal contracts; Tesla stock crashes.
- Later June 5: Billionaire investor Bill Ackman calls for a truce. Musk responds: “You’re not wrong.”
- June 6: White House aides schedule a call with Musk to de-escalate the situation.
Signs of peace — and a market bounce
By Friday, the mood had shifted. Trump, in a call with POLITICO, downplayed the feud entirely:
“Oh it’s okay. It’s going very well, never done better.”
Meanwhile, White House aides confirmed a call was scheduled with Musk to smooth over the fallout and refocus Trump’s attention on getting his bill through the Senate.
In Europe, markets responded quickly. Tesla shares jumped 5.6% in Frankfurt, signaling investor optimism that the damage could be contained.
Why it matters: A fragile alliance at risk
Musk and Trump have long had a complicated relationship. Musk backed Trump during his 2024 campaign, even attending rallies and praising his economic policies. But the two clashed repeatedly over regulation, subsidies, and immigration.
This week’s clash was the most public—and damaging—yet.
“This is no longer a disagreement,” one GOP strategist told CNN. “It became an ideological divorce in real time.”
Still, both sides have reasons to de-escalate. Trump needs private sector backing for his economic agenda. Musk needs policy stability and access to federal partnerships.
The Trump–Musk feud became a rare moment when politics, personality, and power collided—sending shockwaves through Washington and Wall Street. While signs of peace are emerging, the relationship remains deeply unstable.
With billions in contracts, subsidies, and public image at stake, the world will be watching what happens on that scheduled phone call.
Will they bury the hatchet? Or will the battle of the billionaires ignite again?
Here’s a timeline of the feud:
June 3
1:31 PM ET
Musk posts that the “massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination”
I’m sorry, but I just can’t stand it anymore.
This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.
Shame on those who voted for it: you know you did wrong. You know it.— Elon Musk (@elonmusk) June 3, 2025
June 4
2:07 am ET
Musk claims the budget bill would “defeat all the cost savings achieved” by DOGE
It more than defeats all the cost savings achieved by the @DOGE team at great personal cost and risk— Elon Musk (@elonmusk) June 4, 2025
1:59 pm ET
Trump posts an image on Truth of Musk’s post announcing he’s leaving government
June 5
10:52 am ET
Musk shares post claiming “majority” of Republican voters want the budget bill “trimmed down,” adding “Yes”
Yes https://t.co/TzdLrczILO— Elon Musk (@elonmusk) June 5, 2025
11:20 am ET
Musk shares old Trump post criticizing Republican lawmakers for raising the debt ceiling, adding “wise words”
Wise words https://t.co/6juH1jEjtc— Elon Musk (@elonmusk) June 5, 2025
11:46 am ET
Musk reposts an old Trump post saying “no member of Congress should be eligible for reelection” if the US budget isn’t balanced, with Musk adding “I couldn’t agree more”
I couldn’t agree more! 🇺🇸🇺🇸 https://t.co/sZ6xgisZEA— Elon Musk (@elonmusk) June 5, 2025
12:01 pm ET
Trump confirms the deterioration of his relationship with Musk, saying he was “very disappointed” in the tech billionaire after he repeatedly blasted the president’s sweeping domestic agenda bill. “Elon and I had a great relationship. I don’t know if we will anymore,” Trump tells reporters in the Oval Office, less than one week after the two exchanged effusive praise on Musk’s last day as a special government employee.
12:10 pm ET
Musk posts “Slim Beautiful Bill for the win”
Slim Beautiful Bill for the win 🥇— Elon Musk (@elonmusk) June 5, 2025
12:19 pm ET
Musk posts that he would support a “slim” bill that included EV incentive cuts
Whatever.
Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill.
In the entire history of civilization, there has never been legislation that both big and beautiful.…— Elon Musk (@elonmusk) June 5, 2025
12:25 pm ET
Musk disputes Trump’s claim that Musk reviewed the budget bill, saying he was not shown the bill “even once”
False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it! https://t.co/V4ztekqd4g— Elon Musk (@elonmusk) June 5, 2025
12:46 pm ET
Musk claims that without him, Trump would have lost the election
Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.— Elon Musk (@elonmusk) June 5, 2025
12:46 pm ET
In a follow-up post, Musk says “such ingratitude”
Such ingratitude— Elon Musk (@elonmusk) June 5, 2025
1:38 pm ET
Musk reposts video from Trump’s promotion of Tesla at the White House earlier this year, during which the president said Musk “never asked me for a thing”
Remember this? @realDonaldTrump https://t.co/jDct7EHSV2— Elon Musk (@elonmusk) June 5, 2025
1:42 pm ET
Musk encourages lawmakers to “Keep the EV/solar incentives cuts in the bill,” but also “cut all the crazy spending increases”
Keep the EV/solar incentives cuts in the bill, also cut all the crazy spending increases in the Big Ugly Bill so that America doesn’t go bankrupt! https://t.co/ejS8ODNDKF— Elon Musk (@elonmusk) June 5, 2025
1:44 pm ET
Musk posts claim that budget bill will increase US deficit to $2.5 trillion
The Big Ugly Bill will INCREASE the deficit to $2.5 trillion! https://t.co/jEMS6coT3V— Elon Musk (@elonmusk) June 5, 2025
1:48 pm ET
Musk posts “Kill Bill”
Kill Bill https://t.co/QcjNIuGrmd— Elon Musk (@elonmusk) June 5, 2025
1:57 pm ET
Musk starts X poll asking if America needs a new political party
Is it time to create a new political party in America that actually represents the 80% in the middle?— Elon Musk (@elonmusk) June 5, 2025
2:10 pm ET
Musk shared a video of him in 2021 claiming Tesla doesn’t rely on EV subsidies
This is me in 2021! https://t.co/X3MPEH54sk— Elon Musk (@elonmusk) June 5, 2025
2:16 pm ET
Musk responds to post from Laura Loomer suggesting that lawmakers should side with him in budget bill fight because “Trump has 3.5 years left as President, but I will be around for 40+ years”
Oh and some food for thought as they ponder this question: Trump has 3.5 years left as President, but I will be around for 40+ years …— Elon Musk (@elonmusk) June 5, 2025
2:20 pm ET
The mother of one of Musk’s children, right-leaning influencer Ashley St. Clair, offers Trump “breakup advice”
hey @realDonaldTrump lmk if u need any breakup advice— Ashley St. Clair (@stclairashley) June 5, 2025
2:21 pm ET
Musk shared an old X post from House Speaker Mike Johnson raising concern about US national debt and said “Where is the Mike Johnson 2023!?”
Where is the Mike Johnson of 2023!? https://t.co/wJaUuwUKQv— Elon Musk (@elonmusk) June 5, 2025
2:23 pm ET
Musk claims members of Congress didn’t have time to read the budget bill
Not even those in Congress who had to vote on the Big Ugly Spending Bill had time to read it! https://t.co/mBOQyhQYwX— Elon Musk (@elonmusk) June 5, 2025
2:25 pm ET
Musk posted an video of Sen. John Thune from 2020 raising concern about US debt, with the billionaire adding, “Where is the John Thune of 2020??”
Where is the John Thune of 2020?? https://t.co/EeRRSUjUIR— Elon Musk (@elonmusk) June 5, 2025
2:30 pm ET
Musk reposts X post from a Jerome Powell parody account asking whether Musk or Trump is right
Who is right?— Not Jerome Powell (@alifarhat79) June 5, 2025
2:35 pm ET
Musk reposts another old post from Johnson calling on Congress to reduce deficit spending, with the billionaire adding, “I super agree with this guy”
I super agree with this guy 👇 https://t.co/KMSXVsWuOO— Elon Musk (@elonmusk) June 5, 2025
2:36 pm ET
Musk posts that Congress is “spending America into bankruptcy”
Congress is spending America into bankruptcy! https://t.co/71oPOWwC06— Elon Musk (@elonmusk) June 5, 2025
2:37 pm ET
Trump claims he asked Musk to leave the administration and took away his “his EV mandate,” after which he alleges Musk “just went CRAZY!”
2:37 pm ET
Trump posts that the US government could save billions of dollars in its budget by terminating the contracts and subsidies awarded to Musk’s companies
2:48 pm ET
Musk refutes Trump’s claim that his disagreement with the “big, beautiful bill” is related to EVs
Such an obvious lie. So sad. https://t.co/sOu9vqMVfX— Elon Musk (@elonmusk) June 5, 2025
3:10 pm ET
Musk claims Trump is “in” the Jeffrey Epstein files
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!— Elon Musk (@elonmusk) June 5, 2025
3:20 pm ET
Follow-up Musk X post claims “the truth will come out”
Mark this post for the future. The truth will come out.— Elon Musk (@elonmusk) June 5, 2025
3:33 pm ET
Ye, the rapper also known as Kanye West, weighs in
Broooos please noooooo 🫂 We love you both so much— ye (@kanyewest) June 5, 2025
3:45 pm ET
House Speaker Mike Johnson hits back at Musk’s criticism and defends the budget bill
The Mike Johnson of 2023 is the SAME Mike Johnson who has always been a lifelong fiscal hawk – who now serves as Speaker and is implementing a multi-stage plan to get our country back to fiscal responsibility and extraordinary economic growth.
It begins with the critically… https://t.co/8c2l3bTdk1— Speaker Mike Johnson (@SpeakerJohnson) June 5, 2025
4:06 pm ET
Trump complains about the timing of Musk’s fight in the middle of the administration’s effort to pass his policy bill in Congress
4:09 pm ET
Musk threatens to decommission the SpaceX Dragon spacecraft that returned NASA astronauts from the International Space Station
In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately pic.twitter.com/NG9sijjkgW— Elon Musk (@elonmusk) June 5, 2025
4:11 pm ET
Musk agrees with X user calling for Trump’s impeachment
Yes https://t.co/rqRsX8B4Hg— Elon Musk (@elonmusk) June 5, 2025
4:15 pm ET
Tesla’s stock plunged around 14% Thursday, erasing about $150 billion off the company’s market value.
4:26 pm ET
Musk claims Trump’s tariffs will cause recession
The Trump tariffs will cause a recession in the second half of this year https://t.co/rbBC11iynE— Elon Musk (@elonmusk) June 5, 2025
4:43 pm ET
Musk shares a video showing Trump at a party with Epstein, along with a raised eyebrow emoji
— Elon Musk (@elonmusk) June 5, 2025
6:48 PM ET
Press secretary Karoline Leavitt calls Musk’s claim that President Donald Trump is “in the Epstein files” an “unfortunate episode” in a statement Thursday night.
“This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted. The President is focused on passing this historic piece of legislation and making our country great again,” Leavitt told CNN in a statement.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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