Musk vs. Trump: Feud Ignites Markets, Power Clash Erupts

June 6, 2025, 12:16 PM +06 — The world’s richest man and the most powerful man in the U.S. are at war. Elon Musk, CEO of Tesla and SpaceX, and President Donald Trump, once allies, have turned their social media platforms—X and Truth Social—into battlegrounds. What started as a policy dispute over Trump’s “big, beautiful bill” has spiraled into personal attacks, market chaos, and allegations that could reshape political and economic landscapes. Tesla’s stock plummeted 14% on June 5, wiping $152 billion off its value, while Trump’s Truth Social saw its own shares slide 8%. Here’s the raw, verified truth behind this seismic clash.

From Bromance to Breakup: A Timeline of Tensions

The Musk-Trump alliance was once a political spectacle. In July 2024, Musk endorsed Trump after an alleged assassination attempt in Pennsylvania, funneling a reported $290 million into Trump’s campaign, per BBC News. By March 2025, Trump was boosting Tesla, hosting a makeshift car show on the White House lawn and announcing plans to buy a Model S to counter boycotts against Musk’s MAGA ties. “I’m helping Elon a lot,” Trump said on May 30, 2025, in the Oval Office, per Politico.

But cracks formed fast. Musk’s role as a Special Government Employee at the Department of Government Efficiency (DOGE) ended in late May 2025. On May 29, he posted on X, thanking Trump for the opportunity but signaling his exit: “The @DOGE mission will only strengthen over time.” Days later, Musk criticized Trump’s tax and spending bill, calling it a “disgusting abomination” on June 4, per AP News. The bill, which passed the House and is under Senate debate, cuts subsidies for electric vehicles (EVs)—a direct hit to Tesla.

Trump fired back on June 5, accusing Musk of being “upset” over the loss of EV tax credits. “Elon knew the inner workings of this bill better than almost anybody,” Trump said in a news conference with German Chancellor Friedrich Merz, per NBC News. The feud exploded when Trump posted on Truth Social, threatening to cut “Billions and Billions of Dollars” in government contracts to Musk’s companies, including SpaceX and Tesla.

Social Media War: X vs. Truth Social

The clash played out in real-time on rival platforms. Musk, with 220 million followers on X, lobbed a bombshell on June 6 at 1:10 AM +06, claiming without evidence: “@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!” Ten minutes later, he added, “Mark this post for the future. The truth will come out.”

Trump hit back on Truth Social, calling Musk “CRAZY” and claiming he “went CRAZY” over the bill’s EV subsidy cuts. “Elon was ‘wearing thin,’ I asked him to leave,” Trump posted on June 5, per CNBC. He doubled down, suggesting the government could save billions by terminating Musk’s subsidies and contracts.

White House Press Secretary Karoline Leavitt dismissed Musk’s Epstein claim as “an unfortunate episode” tied to his frustration with the bill. “The President is focused on passing this historic legislation,” she told USA TODAY on June 6. Leavitt also shared Trump’s Truth Social post on her White House X account, signaling her loyalty.

The feud’s scale is staggering. X, owned by Musk, boasts 600 million active users, dwarfing Truth Social’s 6.3 million, per CNN. Yet both platforms became arenas for their war, with Musk screenshotting Trump’s posts to mock them and Trump using Truth Social to rally his base. “It’s like two neighbors shouting over the fence,” CNN noted.

Market Meltdown: Tesla and Truth Social Tank

The financial fallout was immediate. On June 5, Tesla’s stock ($TSLA) plunged 14%, erasing $152 billion in market value and knocking $8.73 billion off Musk’s net worth, per Bloomberg. The slide began as Musk criticized the bill and worsened after Trump’s contract threats. Shares dropped as low as 15% in after-hours trading, per NBC News.

Trump Media & Technology Group, which runs Truth Social, also took a hit, falling 8% on June 5, per The New York Times. The sell-off reflected investor fears over the feud’s broader impact. “Elon’s politics continue to harm the stock,” Reuters reported, noting Tesla faces regulatory scrutiny from the U.S. Transportation Department over its “Full Self-Driving” software.

Analyst Patrick Moorhead of Moor Insights & Strategy argued the feud could paradoxically help Tesla’s brand long-term. “We’re a very forgiving country,” he told BBC News on June 5. But for now, the damage is real. Tesla’s market cap fell to roughly $900 billion, and Musk’s net worth took a $8.73 billion hit, per Bloomberg.

SpaceX in the Crosshairs: Dragon Decommission Drama

Musk escalated the feud on June 6 at 2:09 AM +06, announcing on X that SpaceX would “begin decommissioning its Dragon spacecraft immediately” in response to Trump’s contract threats. The Dragon, critical for NASA’s astronaut and cargo missions to the International Space Station, is a cornerstone of U.S. space policy. NASA’s Bethany Stevens responded, “We will continue to work with our industry partners to ensure the President’s objectives in space are met,” per NBC News.

Later that day, Musk reversed the decision after a user named Alaska urged him to “cool off,” confirming SpaceX would continue supporting NASA, per X trends. The flip-flop sparked chaos online, with political figures like Steve Bannon calling for the government to seize SpaceX under the Defense Production Act.

Why Are They Fighting? The Bill at the Heart of It

The feud’s spark is Trump’s “big, beautiful bill,” a tax and spending package that curtails EV subsidies, impacting Tesla’s bottom line. Musk, who reportedly lobbied lawmakers like House Speaker Johnson to keep the credits, called the bill a “disgusting abomination” on June 4, per AP News. Kentucky Senator Rand Paul echoed Musk’s concerns, warning the bill could add trillions to the national debt.

Trump, however, sees the bill as a legacy-defining achievement. “Elon’s upset because we took the EV mandate, which was a lot of money for electric vehicles,” he said on June 5, per NBC News. Musk’s pushback, including claims about Trump’s role in the 2024 election—“without me, he would have lost”—further inflamed tensions.

Veteran tech reporter Kara Swisher likened Musk’s personal brand to Bill Gates’, suggesting his political moves could reshape his legacy, per BBC News. But Trump’s camp, led by Leavitt, insists he remains the Republican Party’s leader. “President Trump is the leader. Full stop,” she told Business Insider on June 5.

Epstein Allegations: A Dangerous Escalation

Musk’s Epstein claim, posted on X at 1:10 AM +06 on June 6, marked a new low. The unverified allegation—that Trump’s name appears in classified Jeffrey Epstein files—drew swift backlash. House Democrats seized on it, demanding the files’ release, per The New York Times. Leavitt called it “an unfortunate episode,” tying it to Musk’s bill frustrations.

The claim, lacking evidence, fueled online chaos. X users debated its validity, with some calling it a desperate jab, while others speculated on its implications. “The truth will come out,” Musk wrote, doubling down. Trump has not directly addressed the allegation, focusing instead on Musk’s “ingratitude.”

Political Ripples: A Party in Crisis?

The feud has broader implications. Musk’s X posts on June 5 sparked talk of a new political party, reflecting frustration with the two-party system, per X trends. Some users advocated eliminating parties entirely, while others doubted a third party’s viability. The clash has also divided Republicans, with fiscal conservatives like Rand Paul siding with Musk.

Vice President JD Vance tried to downplay the feud, posting on X with comedian Theo Von: “Slow news day, what are we even talking about?” But the rift is undeniable. “The public feud comes after a remarkable partnership that lasted longer than many predicted,” The Guardian noted on June 6.

What It Means Now

The Musk-Trump fallout is more than a personal spat—it’s a market mover and political earthquake. Tesla’s $152 billion loss signals investor jitters, with regulatory risks looming over its driverless tech. SpaceX’s Dragon drama threatens U.S. space ambitions, despite Musk’s reversal. Truth Social’s 8% drop shows even Trump’s brand isn’t immune.

Politically, the feud exposes Republican fractures. Musk’s influence, amplified by X’s 600 million users, challenges Trump’s grip on the party. His Epstein claim, though unverified, could fuel demands for transparency, per The New York Times. Economically, Musk’s recession warning—posted on X at 2:26 AM +06 on June 6—ties the bill’s tariffs to potential downturns, rattling markets.

For now, the Tesla Model S sits on the White House lawn, a relic of happier times. As Musk and Trump trade barbs, the world watches a billionaire and a president reshape power, markets, and politics in real-time. Stay sharp with Ongoing Now 24.