The feud between Donald Trump and Elon Musk has erupted into a full-blown political and financial spectacle, signaling a sharp break between two of America’s most prominent and controversial figures. Here's a breakdown of the escalating drama and its broader implications:
🔥 The Breakdown of the Trump-Musk Alliance
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Trump dismissed Musk, saying he was “not particularly interested” in talking to someone who had “lost his mind.” He claimed Musk was eager for a conversation, but Trump rebuffed it.
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Musk, who recently resigned from the Department of Government Efficiency (DOGE) on May 28, had criticized Trump’s massive tax-cut and spending bill, calling it fiscally irresponsible.
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Trump retaliated by threatening to cancel government contracts tied to Musk's ventures, specifically hinting at a lack of EV incentives in the bill, which deeply affects Tesla.
⚡ Musk’s Response
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Musk clapped back with a sharp “Whatever” on X (formerly Twitter) and reminded the public of his past support for Trump:
“Without me, Trump would have lost the election... Republicans would be 51-49 in the Senate.”
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This comment referred to Musk’s heavy financial support for Trump’s 2024 campaign, especially in the aftermath of two assassination attempts, which had politically rallied Republicans around Trump.
📉 Tesla’s Massive Crash
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The fallout immediately hit Tesla hard:
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Stock plunged 14% on Thursday, the largest single-day drop in company history.
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Over $150 billion in market value was wiped out, pushing Tesla's market cap below $1 trillion, ending at $916 billion.
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Analysts cited concerns over federal contract risks and Musk’s increasing political volatility as reasons for the sell-off.
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🧠 DOGE and the Bigger Picture
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The now-defunct DOGE (Department of Government Efficiency) had been Musk’s pet project in the Trump administration, aimed at reducing federal bureaucratic waste.
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His exit from DOGE coincided with rising tensions, signaling that his influence within the Trump orbit was waning before this public spat.
💥 What This Means
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Political Impact: Trump loses a high-profile tech backer who had crossed traditional political lines. The GOP may feel the void in donor support and tech strategy.
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Business Fallout: Tesla faces uncertain regulatory and contractual terrain under Trump, especially with EV credits and federal support potentially drying up.
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Market Signals: Investors are increasingly wary of Musk’s entanglements in partisan politics, and the Tesla drop reflects broader fears of reputational and operational risk.
This feud could have long-term implications for both Trump’s 2026 strategy and Musk’s business empire, especially as the 2025 policy landscape shifts rapidly. What once was a high-profile alliance of convenience now looks like a battlefield.
