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The once-powerful alliance between President Donald Trump and Tesla CEO Elon Musk unraveled spectacularly Thursday in a torrent of public insults, political threats, and personal allegations, marking one of the most dramatic fallouts between a sitting president and a high-profile business leader in recent memory.
What began as criticism over Musk’s opposition to Trump’s legislative centerpiece — a sweeping Republican spending bill — quickly escalated into an online slugfest. Trump hinted that the federal government could cut ties with Musk’s companies, while Musk retaliated with accusations linking Trump to Jeffrey Epstein, the late convicted sex offender.
“I’m very disappointed in Elon,” Trump said during an Oval Office press availability with German Chancellor Friedrich Merz. “I’ve helped Elon a lot.”
Trump’s remarks referenced Musk’s sharp rebuke of the GOP bill, which the Tesla CEO called a “disgusting abomination” earlier this week. The bill slashes electric vehicle (EV) tax credits, a move Musk suggested was deliberately designed to cripple Tesla.
“Elon’s upset because we took the EV mandate,” Trump said. “They’re having a hard time with electric vehicles and they want us to pay billions of dollars in subsidy.”
The tension is a striking reversal for two figures once seen as political and economic allies. Musk had donated over $250 million to Trump’s 2024 campaign and joined the administration as head of the Department of Government Efficiency (DOGE), where he spearheaded sweeping cuts and data consolidations.
But as Trump’s focus shifted toward large-scale government spending — a reversal of Musk’s austerity crusade — the rift grew. Musk stepped down from his role last month, citing “irreconcilable policy differences.” His companies — Tesla and SpaceX — now face potential scrutiny, as Trump floated the idea of revisiting government contracts.
Tesla’s stock has tumbled more than 20% this year, a decline accelerated by Musk’s return to day-to-day leadership and increasingly combative political commentary. Investors are concerned about the company’s direction as Musk returns “24/7” to Tesla amid growing competition and controversial headlines.
On X (formerly Twitter), Musk dismissed Trump’s criticisms, posting a casual “whatever,” before unleashing a torrent of posts accusing Trump of betraying him and claiming he was responsible for Trump’s 2024 victory.
“Without me, Trump would have lost the election,” Musk posted. “Such ingratitude.”
Trump quickly responded on Truth Social, accusing Musk of “going crazy” after being asked to leave the White House. He added that Musk’s companies should no longer expect favorable treatment from the federal government.
In a shocking escalation, Musk responded with a cryptic reference to “the Epstein files,” implying the president was linked to the notorious financier. While Trump and Epstein were known to have socialized in the 1990s, there have been no legal findings implicating Trump in Epstein’s crimes. Trump has repeatedly denied any wrongdoing, saying in 2023: “I was never on Epstein’s plane, or at his ‘stupid’ island.”
The White House declined to comment on Musk’s insinuation.
The break is all the more jarring given the public affection Trump once expressed for Musk. As recently as last week, Trump praised his work in government as “without comparison in modern history.”
“Elon’s service to America has been incredible,” Trump said at the time. “He’s not really leaving. It’s his baby. He’ll be back and forth.”
But for now, the split between the president and the tech billionaire appears complete — and explosive. With federal contracts, EV policy, and campaign alliances now at stake, the feud could have wide-ranging implications for both Washington and Wall Street.
