A dramatic clash between U.S. President Donald Trump and billionaire entrepreneur Elon Musk erupted into a political firestorm this week, ending their once-powerful alliance in a storm of threats, social media jabs, and economic fallout.
In a move that could signal a potential truce, a White House official confirmed that Trump and Musk are scheduled to speak on Friday, though the timing remains unclear. The call follows an unprecedented day of hostility that sent Tesla stock plunging by over 14%, wiping out approximately $150 billion in market value — the largest single-day loss in the company’s history. The announcement of the call helped Tesla shares rebound slightly in European markets.
The feud spilled into public view just days after Musk resigned from his post as head of the Department of Government Efficiency. His departure was quickly followed by fierce criticism of Trump’s proposed tax cuts and spending package, a flagship economic policy Musk labeled a “disgusting abomination.” He warned the legislation would further swell the federal deficit, already at $36.2 trillion.
Trump remained silent at first. But on Thursday, he publicly expressed disappointment in Musk, saying, “Elon and I had a great relationship. I don’t know if we will anymore.” The comment was swiftly met with a sharp reply from Musk on X: “Without me, Trump would have lost the election,” referencing his estimated $300 million in political donations to Trump-aligned campaigns.
The exchange escalated further when Trump suggested cancelling all government subsidies and contracts linked to Musk’s businesses, including SpaceX and Starlink. Musk, in turn, replied “Yes” to a social media post calling for Trump’s impeachment — a symbolic jab more than a serious threat, considering the Republican Party currently controls Congress.
Musk even hinted at decommissioning SpaceX’s Dragon spacecraft, which is vital to NASA’s missions to the International Space Station. However, by Thursday night, he appeared to soften his tone, responding “You’re not wrong” to fellow billionaire Bill Ackman’s call for reconciliation between the two titans.
This very public falling-out highlights deeper fractures within the Republican Party. Musk’s critiques of Trump’s fiscal agenda have already energized dissent among conservative lawmakers, threatening the bill’s path through the Senate.
With midterm elections looming, GOP strategists fear that losing Musk’s financial muscle and Silicon Valley influence could weaken the party’s grip on Congress. A Republican consultant with ties to both Trump and Musk admitted, “If he sits out the midterms, that worries me.”
As tensions rose earlier in the week, Musk hinted at launching a political campaign of his own — or at least influencing one. “In November next year, we fire all politicians who betrayed the American people,” he posted.
The feud has already had real-world consequences. Protests have erupted at Tesla facilities, with critics accusing Musk of focusing too heavily on politics and not enough on his core business. Investors, meanwhile, are growing increasingly nervous about the fallout — both financially and politically — from Musk’s deepening involvement in Washington.
Whether Friday’s conversation will lead to peace or further provocation remains to be seen.