One was the president’s most influential patron, the other the most powerful businessman in the country. In just a few weeks, Elon Musk and Donald Trump went from allies to enemies. A sudden break fueled by political differences… and explosive accusations surrounding the Epstein case.
In 2024, Elon Musk emerged as a key supporter of Donald Trump’s campaign. The Tesla boss reportedly injected between $288 million and $300 million via the America PAC super PAC to promote the Republican candidate’s re-election. This support turned into direct influence within the administration, with Trump appointing Musk as special advisor to the Department of Government Efficiency (DOGE), a body created to streamline public spending.
However, the alliance between the two influential men broke down in early summer 2025.
A budget law as the catalyst for the breakup
Everything changed in June 2025, when the bill nicknamed “One Big Beautiful Bill,” a sweeping budget bill backed by Trump, was introduced in Congress. Elon Musk, who has just left the Trump administration, harshly criticized the bill on X (formerly Twitter), calling it a “disgusting abomination” and denouncing it as a project “filled with unnecessary spending.” The breaking point was reached when Trump responded publicly, stating in the Oval Office that he was “very disappointed” in Musk and accusing him of benefiting from billions of dollars in subsidies while attacking the government.
The escalation continues : on June 6, Donald Trump announces that he wants to cancel all federal contracts and subsidies granted to Tesla, SpaceX, and Musk’s other companies. This threat targets not only tax credits for electric vehicles, but also government space contracts, particularly those related to the Pentagon.
Musk responded on X with a series of accusatory messages. He claimed that without his support, Trump would have lost the election. More seriously, he insinuated that Trump was mentioned in the Epstein files, which would explain why the administration had not released them. These statements caused an uproar in Washington.
A cascade of consequences
The dispute has not been without consequences. On June 7, Tesla’s share price plummeted by 14%, wiping out more than $150 billion in market capitalization. Elon Musk himself lost between $8 billion and $34 billion of his personal fortune in the space of two days. Uncertainty surrounding SpaceX’s contracts is also causing investors to tremble.
Donald Trump, determined to reorganize the military supply chain, authorized the Pentagon to seek alternatives to SpaceX for the Golden Dome project, a space defense program estimated at $175 billion. Companies such as Lockheed Martin, Amazon/Kuiper, and Rocket Lab were asked to offer competing solutions. The era of exclusive dependence on SpaceX could be coming to an end, according to the US president’s wishes.
For his part, Elon Musk announced in early July the creation of the America Party, a political movement that aims to transcend the Republican-Democrat divide. This party, he explains in a manifesto published on X, aims to restore “efficiency and truth in government.” The initiative was immediately denounced by Trump, who called Musk a “train wreck” and warned that the American system is not designed to accommodate a third major party. Trump sees this move as a chaotic and personal attempt at revenge.
Almost two months after the breakup, there are no signs of reconciliation on the horizon. The two men are no longer speaking to each other, and their teams are no longer collaborating on any projects. SpaceX recently warned its investors that its founder’s political activism could affect future performance, a statement that hints at the profound consequences of this personal and public feud.
This conflict between Elon Musk and Donald Trump is not just an anecdote between two oversized egos. It symbolizes a broader tension between private economic power and institutional power. And, as the 2028 presidential election approaches, the rift between these two major figures could well redraw the American political landscape.
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