From campaign bedfellows to political adversaries, the public fallout between Elon Musk and Donald Trump has triggered ripples through the White House, global markets, and beyond. As personal egos collide with economic ideologies, the stakes for America—and the world—have rarely been higher.
The Rise and Ruin of a Political Power Duo
What once seemed like an unbeatable alliance between tech mogul Elon Musk and U.S. President Donald Trump has disintegrated into one of the most dramatic political breakups in recent memory. Their very public feud, which erupted in early June 2025, marks a critical shift not only in American governance but also in the delicate nexus of politics, business, and global influence.
Musk, the maverick billionaire behind Tesla, SpaceX, and Starlink, had positioned himself as a kingmaker in Trump’s successful 2024 re-election campaign. With nearly $300 million poured into Republican coffers and the strategic use of his platform, X, to bolster Trump’s message, Musk’s influence was both financial and ideological. In return, Trump rewarded him with a central role in his administration, naming him head of the newly minted Department of Government Efficiency (DOGE). From Cabinet meetings to policy briefings aboard Air Force One, Musk’s access rivalled that of any political insider, earning him the informal title of Trump’s “First Buddy.”
Yet the shared honeymoon did not last. What began as a transactional partnership based on mutual gain quickly devolved into a bitter clash of personalities and priorities.
The Breaking Point: One Big, Bad Bill
The central trigger behind their falling out was Trump’s flagship legislative package—the ambitiously titled “One Big Beautiful Bill.” Passed by the House in May 2025, the 1,038-page document promised a sweeping $3.7 trillion in tax cuts. But it also added a staggering $2.4 trillion to the national debt, drawing immediate backlash from fiscal conservatives.
Among the loudest critics was Musk himself. Using his platform on X, he lambasted the bill as a “disgusting abomination” riddled with pork-barrel spending. He accused its Republican supporters of abandoning the very principles of fiscal responsibility on which DOGE was founded.
Trump, clearly stung, hit back. Speaking from the Oval Office, he insinuated that Musk’s criticism was less about ideology and more about lost corporate benefits—specifically, the elimination of electric vehicle (EV) tax credits worth up to $7,500, a move that directly impacted Tesla’s bottom line.
Musk denied any self-interest, insisting his opposition was rooted in economic prudence. But the rift deepened when he suggested that Trump owed his 2024 victory to Musk’s financial and digital support—an assertion that deeply infuriated the President.
The Seeds of Discontent: More Than Just Money
Beyond the immediate spat over tax legislation, longstanding differences had been bubbling beneath the surface. Musk had repeatedly urged Trump to roll back global tariffs, which had sent shockwaves through international markets and negatively impacted Tesla’s share value. His lobbying failed.
Further tension arose when Trump withdrew the nomination of Musk ally Jared Isaacman for NASA Administrator, a decision seen as a calculated personal slight. These events culminated in a full-blown political rupture by June 5, with Trump publicly threatening to cancel government contracts tied to Musk’s companies. In response, Musk floated the idea of Trump’s impeachment and teased the formation of a new political party.
Fallout in the White House
Musk’s resignation from DOGE, effective May 30, has dealt a serious blow to one of the Trump administration’s signature initiatives. While the task force claimed to have saved $160 billion in federal spending, it fell dramatically short of Musk’s original target of $1–2 trillion. The abrupt exits, chaotic restructurings, and multiple legal challenges that plagued DOGE’s operations have further damaged its credibility.
The feud also lays bare the growing ideological schisms within the Republican Party. Figures like Senators Rand Paul and Ron Johnson have sided with Musk, echoing his critiques of unsustainable federal spending. The bill’s passage through the Senate now hangs in the balance, threatening Trump’s broader legislative agenda.
Complicating matters further are growing ethics concerns. Musk never received a formal waiver addressing potential conflicts of interest in his dual role as policy advisor and business magnate. With public scrutiny mounting, Trump’s attempts to present his administration as transparent and business-savvy are beginning to ring hollow.
Musk Inc. Takes a Hit—But Not Everywhere
Tesla has borne the immediate brunt of the political backlash. The company’s stock nosedived 14.3% on June 5 following Trump’s threats, wiping out $150 billion in shareholder value. Already under pressure from declining EV subsidies and a consumer boycott driven by Musk’s increasingly partisan rhetoric, Tesla saw its Q1 profits plunge by 71%. Acts of protest and vandalism at Tesla dealerships across the country reflect the broader public unease.
Yet not all of Musk’s ventures are equally vulnerable. SpaceX, now projected to earn $15.5 billion in 2025—surpassing NASA’s own budget—continues to dominate the aerospace sector. Trump loyalists still lead NASA and the Air Force, making it unlikely that key contracts will be revoked in practice, even if rhetoric suggests otherwise. Starlink, Musk’s satellite-based internet provider, also stands to benefit from expanded government interest in communications infrastructure, though its push to enter air traffic control systems has so far been thwarted.
Musk’s political ambitions, including the potential launch of a new centrist party, pose both a risk and an opportunity. While his 220 million X followers represent a formidable base, his increasingly erratic public posture could alienate moderate consumers and investors—particularly in environmentally progressive markets that have long supported Tesla.
Global Shockwaves and Diplomatic Fallout
The Musk-Trump divorce is not merely a domestic drama. Its repercussions are already being felt across the globe. Musk’s vocal support for far-right European movements, including Germany’s Alternative für Deutschland, has sparked diplomatic concern. Leaders such as German Chancellor Olaf Scholz have criticized Musk’s growing political interference as destabilizing.
On the economic front, fears are growing that Trump’s tariff regime—exacerbated by Musk’s warnings of a possible recession—could deepen global market volatility. Tesla’s dependence on Chinese production and sales also places it squarely in the crosshairs of any renewed U.S.-China trade conflict.
Musk’s role in government has also triggered wider debates about billionaire influence in democratic governance. His access to sensitive data during his DOGE tenure, including immigration and intelligence files, has raised alarms over data security and political accountability. These concerns are likely to reverberate in democracies already wary of technocratic overreach.
A Fragile Future, A Divided Legacy
What began as a strategic alliance built on power, money, and mutual gain has ended in acrimony and potential disaster. For Trump, the rift jeopardizes his legislative ambitions and image as a corporate statesman. For Musk, the damage to Tesla and his public standing may be difficult to reverse, even as SpaceX and Starlink remain robust.
The broader lesson from this fallout is clear: governance by billionaires carries risks that cannot be masked by rhetoric or campaign donations. As both men retreat to their respective camps—Trump to the White House, Musk to his digital empire—the world waits to see what comes next.
Will Musk forge a new political path? Will Trump survive the backlash from within his own party? And more urgently, what does this fractured relationship mean for a world already grappling with technological disruption, political instability, and economic uncertainty?
Only time—and perhaps the next tweet—will tell.
(Hasnain Naqvi is a former member of the history faculty at St. Xavier’s College, Mumbai )
