Trump-Musk breakup turns ugly and costly

The partnership between President Donald Trump and Elon Musk collapsed spectacularly last week.

Their yearlong alliance—built on money, power, and a shared mission to reshape Washington—ended in a storm of personal insults, policy clashes, and financial threats.

Just days earlier, Trump had planned a warm send-off in the Oval Office for Musk. But behind the scenes, tensions were already simmering.

What triggered it?
The fallout began after Musk slammed Trump’s flagship domestic policy, his “big, beautiful” bill, as a “disgusting abomination.” The conflict escalated quickly, with both men trading insults and accusations online.

Musk, once a top adviser to Trump and a driving force behind deep cuts in federal spending, accused the president of betraying core principles. Trump fired back, labeling Musk “crazy,” and threatened to terminate federal contracts with his companies, including NASA’s SpaceX deals.

How Musk responded
By nightfall, Musk retaliated with bombshells—linking Trump to Epstein documents, threatening to ground NASA’s SpaceX missions, and even calling for Trump’s impeachment. He floated the idea of a new political party and claimed credit for Trump’s 2024 victory.

Trump, in return, responded by mocking Musk’s ego, calling him ungrateful and accusing him of turning bitter after losing influence. Their fallout sent shockwaves through the political and financial markets.

Both lost big: Tesla stock dropped 14%, erasing $152 billion in value, while shares of Trump Media fell 8%. Musk, who pledged $275 million to help Trump win in 2024, had promised $100 million more before the 2026 midterms—now appears off the table.

The fallout’s bigger stakes
Musk’s allies are uneasy, fearing the rift could hurt his influence on the “tech right.” Trump’s team braces for a drawn-out power struggle. While Musk hinted at reconciliation, the break has deeply reshaped MAGA’s inner circle.