From Alignment to Conflict Between Elon Musk and Donald Trump

Recently, the relationship between Elon Musk and Donald Trump has dramatically shifted. Initially, Musk was a key advisor to Trump’s Department of Government Efficiency, promoting deregulation. Trump publicly praised Musk, calling his role a major success for government efficiency.

However, tensions arose by June 2025, when Musk criticized Trump’s “One Big Beautiful Bill,” a comprehensive spending plan, calling it a “disgusting abomination” that increased the deficit. The bill also reduced electric vehicle tax credits, harming Tesla’s interests.

Trump’s Retaliation and Musk’s Response

In response, Trump expressed his disappointment in Musk, even inviting him to leave the Oval Office. He threatened to rescind government subsidies and contracts, which could cut Tesla’s revenue by tens of billions and cause a significant stock price decline.

Market Shockwaves and Political Ramifications

Following Trump’s attacks, shares of Tesla dropped over 14%, erasing around $150 billion in market value and nearly $20 billion from Musk’s net worth. This episode darkened Tesla’s near-term outlook and shook investor confidence.

Previously, Trump had praised Musk for his support in elections, but their relationship soured due to disagreements over policy and corporate interests. Trump now labels Musk as “hostile,” questioning his loyalty, amid broader concerns about Musk’s political alignments and influence.

Future Outlook: Escalation or Settlement?

Trump continues to threaten Musk’s business ventures, even hinting at nationalizing Musk’s assets, raising fears of escalating conflict. Musk, meanwhile, remains defiant, publicly retaliating against Trump with provocative statements, while facing ongoing scrutiny and partisan criticism.

These bitter exchanges concern investors and policymakers alike, as the rivalry impacts markets, regulatory considerations, and the media narrative—transforming the relationship into a high-stakes power struggle that threatens to reshape the tech-politics landscape.