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The relationship between two of the world’s most influential figures—Elon Musk and Donald Trump—has taken a dramatic turn, culminating in a public feud that could reshape both the political and business landscape in the U.S. and beyond. What started as subtle policy disagreements has escalated into personal attacks, political threats, and significant market reactions.
🚨 What Triggered the Feud?
Musk Slams Trump's "One Big Beautiful Bill"
Around June 5–7, 2025, Elon Musk, the billionaire CEO of Tesla, SpaceX, and head of the now-disbanded Department of Government Efficiency (DOGE), publicly denounced Trump’s sweeping tax and spending bill, dubbed the “One Big Beautiful Bill.” Musk called the legislation a:
“Disgusting abomination that bloats the deficit and bankrupts America’s future.”
Musk, who briefly held a government role in DOGE, aimed to cut U.S. federal spending. He viewed the bill as undoing months of work, directly conflicting with his cost-cutting mission.
In response, Trump dismissed Musk as someone who had "lost his mind" and threatened to terminate key government contracts—a bold move given how much SpaceX relies on federal funding for NASA and defense-related projects.
🔥 From Policy Dispute to Personal Warfare
Personal Attacks Go Public
The feud quickly shifted from policy to personal.
- Musk referenced Trump’s alleged ties to Jeffrey Epstein in a controversial post on X (formerly Twitter).
- He warned that the bill could push the U.S. toward a recession.
- Trump retaliated by saying he might sell his Tesla Model S, adding:
“I’m not even thinking about Elon.”
Allies Join the Brawl
Prominent Trump ally Steve Bannon called for investigations into Musk, including:
- Alleged drug use.
- Immigration records, possibly referring to Musk's South African birth and U.S. citizenship path.
🗳️ Musk’s Political Moves: A New "America Party"?
In a surprising twist, Musk polled his 220 million followers on X about forming a new political party—tentatively titled the "America Party".
- Over 80% of respondents supported the idea.
- Though no formal steps have been taken, this move signals Musk’s intention to stay politically active, potentially disrupting the Republican base and challenging Trump's dominance.
This could introduce a third force in American politics, appealing to centrists, tech enthusiasts, and libertarian-minded voters.
📉 How the Feud Is Impacting Musk’s Businesses
Tesla and SpaceX in the Crossfire
The public fallout has already had financial consequences:
- Tesla stock fell by 14% on June 5, 2025.
- A minor rebound occurred on June 6, but investor confidence remains shaky.
Meanwhile, SpaceX’s future hangs in the balance as it depends heavily on government contracts. Trump’s threat to “review all contracts involving Musk” could cause severe disruptions if acted upon.
Analysts' Perspective:
- Some experts believe the move may backfire on Trump, who is also invested in tech (notably crypto).
- A weakened Musk could affect U.S. innovation, particularly in space and AI technologies.
🏛️ Musk's Legacy at DOGE: Ambition with Limited Success
Elon Musk’s leadership at the Department of Government Efficiency (DOGE) aimed to cut $2 trillion from the federal budget. However, by the end of his tenure in May 2025, the actual savings amounted to just 0.5% of the total budget.
Despite falling short, DOGE made key breakthroughs:
- Supreme Court ruling allowed DOGE to access Social Security data, aiming to modernize services.
- The move sparked controversy, with privacy advocates warning of surveillance risks.
While Musk is no longer at the helm, the infrastructure he put in place could influence future reforms.
🌍 Global Reactions and Non-U.S. Perspective
For non-U.S. observers, the Musk-Trump fallout is more than political theater—it may have international implications:
- Tesla's global factories, including those in Germany, China, and Mexico, may feel ripple effects if U.S. trade or political instability grows.
- SpaceX satellite contracts, some involving international partners, could be delayed or restructured.
- Global markets, especially in tech-heavy indices like the NASDAQ, have already shown volatility linked to this feud.
In regions where Tesla is expanding EV infrastructure or Starlink provides internet coverage, any disruption in Musk’s ventures could delay progress.
🧠 Public Sentiment: A Nation Divided
The conversation on X and other social platforms reflects a deeply divided public:
- Musk supporters see him as a whistleblower standing against political excess.
- Trump loyalists accuse Musk of betrayal and disloyalty after years of support.
- Some voices, including Vice President JD Vance, called Musk’s behavior “a huge mistake,” but noted it stemmed from his “emotional nature.”
Meanwhile, investor James Fishback publicly urged Musk to apologize, but no sign of reconciliation has emerged.
🧭 What’s Next?
As the feud unfolds, all eyes are on:
- Senate deliberations on the “One Big Beautiful Bill.”
- Potential investigations targeting Musk’s personal and business affairs.
- Whether Musk formalizes the America Party ahead of the 2026 midterm elections.
- The long-term fallout for Tesla, SpaceX, and U.S. tech leadership.
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