The tension between Donald Trump and Elon Musk escalated dramatically on June 5, 2025. Once allies, the two men exchanged heated words, with Trump openly criticizing Musk amidst a reception for German Chancellor Friedrich Merz in the Oval Office. Trump claimed to be surprised and disappointed by Musk’s sharp critique of a recent budget bill, labeling it an “ abhorrent disgrace .”
“Elon and I had a great relationship. I don’t know if that will still be the case,” Trump remarked, expressing his astonishment at Musk’s sudden opposition. “I’m very disappointed because Elon knew the content of this bill better than almost anyone here,” he continued. Trump suggested Musk might be experiencing “ anti-Trump derangement syndrome ,” indicating that Musk’s criticism was unfounded.
The response from Musk came swiftly as he took to his social media platform, X , to rebut Trump’s accusations. “ Nonsense ,” Musk replied, reacting to Trump’s assertion that Musk was upset over lost subsidies for electric vehicles. Musk subsequently claimed that without his intervention, Trump would have lost the 2024 election , stating that Democrats would control the House of Representatives and Republicans would be at a narrow 51-49 majority in the Senate.
Musk’s Allegations and Trump’s Threats
In the evening, Trump escalated the feud, alleging on his platform Truth Social that he had terminated Musk’s government mission because Musk had “become crazy.” Trump threatened to eliminate Musk’s government subsidies tied to SpaceX and Tesla , stating, “The easiest way to save billions in our budget would be to cancel those government contracts.”
Musk responded defiantly, hinting that he would reveal significant information about Trump’s involvement in the Epstein files , a reference to financier Jeffrey Epstein , who was accused of serious crimes involving minors. Musk suggested that this was the real reason those documents had not been disclosed.
In another bold move, Musk announced that SpaceX would “immediately start to decommission its Dragon spacecraft ,” which had been instrumental in transporting astronauts to the International Space Station (ISS) .
Stock Market Reaction
This public dispute occurred shortly after Musk had been lauded at a ceremony in the White House for spearheading substantial cuts to public spending. Following the fallout, shares of Tesla plummeted by 14.04% , equating to a loss of over $140 billion in market capitalization. This drop pushed Tesla’s valuation below the critical $1 trillion mark.
The budget bill, which ignited this public feud, had been passed by the House of Representatives under considerable pressure from Trump and had been under consideration in the Senate where Republicans hold a slim majority.
As the tensions unfold, both figures seem determined to stake their claims. Trump portrayed Musk as a jilted lover, reminiscing about Musk’s past accolades for his leadership. “People leave our government; they love us, and at some point, they miss it so much… and some become hostile,” Trump remarked. Musk’s aggressive stance, coupled with his social media presence, signifies that he does not intend to back down.
With both magnates leveraging their platforms and public personas, the implications of their clash extend beyond personal animus, affecting the stock market , public perception, and potential legislative outcomes. This power struggle poses questions over the future collaborations and alliances they may or may not maintain.