The Trump-Musk feud erupted on June 5, 2025, sending Tesla stock (TSLA) down 14% after President Trump threatened to cut Elon Musk’s government contracts. Fueled by disputes over a tax bill and personal jabs, the fallout between Elon Musk and Trump unfolds across Truth Social and X. Here’s the latest on the escalating Trump vs. Musk saga.
A high-profile feud between Elon Musk and President Donald Trump ignited on June 5, 2025, shaking financial markets and dominating headlines. The Trump-Musk fallout, sparked by disagreements over Trump’s “Big, Beautiful Bill,” has seen Tesla stock ($TSLA) plunge 14%, wiping out $150 billion in market value, while Truth Social’s parent company, Trump Media & Technology Group ($DJT), dropped 8%. As Elon Musk’s X posts and Trump’s Truth Social posts fuel the fire, the Musk-Trump feud reveals deep tensions between the world’s richest man and the U.S. president. Here’s the latest on this explosive clash.
Roots of the Trump vs. Musk Feud
The Trump and Musk fallout began when Elon Musk, via his X platform, blasted Trump’s tax and spending bill as a “disgusting abomination” that would balloon the federal deficit. Musk, who recently left his role at the Department of Government Efficiency (DOGE), had been a close Trump ally, with the pair appearing together at the White House as recently as May 30, 2025. Trump accused Musk of opposing the bill due to self-interest, claiming it removes EV mandate tax credits benefiting Tesla. In a Truth Social post, Trump wrote, “Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted, and he just went CRAZY!” Musk fired back on X, escalating the spat with personal attacks.
Tesla Stock Takes a Hit
The Tesla stock price ($TSLA) cratered 14.3% on June 5, losing $150 billion in market value, as investors feared Trump’s threats to terminate Elon Musk’s government contracts, particularly for SpaceX, which relies on billions in NASA deals. The TSLA stock drop, one of its worst single-day declines, was compounded by concerns over Musk’s focus, with his Elon Musk X posts heavily targeting Trump rather than Tesla’s operations. Trump’s Truth Social threat—“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts”—sent shockwaves through Wall Street. DJT stock also fell 8%, reflecting market jitters over the Trump-Musk fight.
Social Media Showdown: Truth Social vs. X
The Trump and Elon feud played out in real time on Truth Social and X, with Donald Trump’s Truth Social posts calling Musk “CRAZY” and Elon Musk’s tweets accusing Trump of ingratitude. Elon Musk’s X account was active with nearly 80 posts on June 5, most targeting President Trump, including a claim that Trump’s name appears in unreleased Jeffrey Epstein files. Trump, on Truth Social Donald Trump, countered that he didn’t mind Elon Musk turning on Trump but wished he’d done it “months ago.” The Musk vs. Trump war of words, described by CNN as “the ugliest comments yet,” has captivated observers, with analysts like Kara Swisher noting the clash of “two massive egos.
Why Are Trump and Musk Fighting?
The Trump and Musk fight stems from Musk’s opposition to Trump’s bill, which extends 2017 tax cuts, slashes social spending, and boosts immigration enforcement. Musk, once a fiscal hawk, argued the bill undermines his DOGE cost-cutting efforts. Trump, via Donald Trump Truth Social, accused Musk of flip-flopping to protect Tesla’s interests after the bill cut electric vehicle subsidies. The Trump-Elon fallout escalated with personal insults, with Musk’s Elon Musk tweet about Trump claiming he was pivotal to Trump’s 2024 election win. Political outlets like Politico and The Hill report that Republican lawmakers, including Speaker Mike Johnson, are caught in the crossfire, with some distancing themselves from the Trump-Musk feud.
Market and Political Fallout
The Elon Musk and Trump fight has broader implications. Tesla shares continued sliding in after-hours trading, down 2.7%, as investors worry about regulatory risks to Elon Musk’s companies. Elon Musk’s net worth, estimated at $400 billion, took a hit with TSLA’s decline, though he remains the world’s richest man. Truth Social Trump posts have also dented $DJT stock, with fears the Trump and Elon Musk rift could weaken Republican unity ahead of midterms. Axios and NPR note the feud’s timing—days after Musk’s White House exit—has fueled perceptions of a power struggle. The Musk and Trump clash could also impact Tesla’s autonomous “robotaxi” plans, as Trump may slow self-driving car approvals.
As the Trump vs. Elon feud continues, focus shifts to whether Trump will follow through on threats to cut Elon Musk’s contracts, potentially affecting SpaceX’s NASA work. Elon Musk news outlets like The Verge and CNBC report Musk’s X Elon Musk activity shows no signs of slowing, with calls for a new political party adding fuel to the fire. Trump news today suggests he’s doubling down, with Donald Trump X engagement (via reposts) defending his bill. The Elon Musk and Donald Trump saga could reshape their influence and market dynamics.
