Trump and Musk Feud Shakes Up Politics and Markets

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FILE: President Donald Trump participates in a press conference with departing DOGE adviser Elon Musk, Friday, May 30, 2025, in the Oval Office. (Official White House Photo by Molly Riley; The White House/Facebook)

A major falling-out between President Donald Trump and Elon Musk is causing waves in both politics and business. What started as a disagreement over a tax and spending bill has evolved into a public feud, with both men engaging in online and media attacks against each other.

The trouble began when Musk called Trump’s bill a “disgusting abomination” and warned it would increase the national debt. Trump, who once called Musk a close ally, responded by saying he was “very disappointed.” Musk then accused Trump of “ingratitude,” claiming, “Without me, Trump would have lost the election.”

Their war of words quickly had real-world effects. Tesla’s stock dropped 14% on Thursday, wiping out billions of dollars in value. Musk later hinted at pulling SpaceX’s Dragon spacecraft from NASA missions but backed down after backlash.

The dispute highlights bigger problems for the Republican Party. Musk donated nearly $300 million to support GOP candidates and helped boost Trump’s campaign. If he pulls back support—or backs a new political party, as he’s suggested—it could hurt Republicans in future elections.

Trump has claimed Musk is upset because his companies may lose government funding. Musk denies this and says he’s upset about wasteful spending in the bill, not the cuts to green energy subsidies.

The White House is now trying to ease tensions. A call between Trump and Musk was scheduled, signaling that both sides may want to calm things down. Musk even replied, “You’re not wrong,” to a post suggesting they should make peace.

Still, the damage may be done. Their feud shows how quickly alliances can shift—and how much influence tech billionaires like Musk have over U.S. politics. If this split continues, it could mark a turning point for both Trump and the Republican Party heading into the next election season.