Background: From Allies to Adversaries
Elon Musk and Donald Trump, once close allies, have seen their relationship crumble publicly. Musk generously backed Trump’s 2024 campaign and even held a White House advisory role. But tensions surfaced in June 2025 after Musk sensationally denounced Trump’s flagship “One Big Beautiful Bill,” igniting a high-stakes showdown between the billionaire tech mogul and the former president.
Musk’s Harsh Critique: ‘Utterly Insane’ and ‘Disgusting Abomination’
Musk criticized the Senate’s draft of Trump’s domestic policy package as “utterly insane and destructive,” highlighting its potential to decimate clean-energy jobs and prop up outdated industries like coal, wind, and solar. He also branded the overall bill a “disgusting abomination,” urging lawmakers to “KILL the BILL” and warning it would balloon the national deficit.
Tariffs Trigger Alarm: Recession Warning
Musk didn’t stop there. He decried Trump’s aggressive tariff proposals, stating plainly on X that “The Trump tariffs will cause a recession in the second half of this year.” He warned those tariffs could spawn economic hardship for the middle class and even backtracked rumours of forming a new centrist party.
Trump Strikes Back: Personal Attacks and Threats
Trump countered vigorously. He called Musk “crazy,” accused him of “Trump Derangement Syndrome,” and threatened to cancel government contracts vital to Tesla and SpaceX. He also implied he might revoke EV incentives crucial to Musk’s businesses. In a dramatic escalation, Trump vowed to dangle billions of federal contracts to punish his former supporter.
Market Fallout: Tesla Takes a Hit
The intensity of the feud struck Wall Street hard. Tesla shares plunged about 14% in a single day, obliterating nearly $150 billion in market cap, the biggest one-day loss in the company’s history, marking a staggering $380 billion drop over a short window of declining investor confidence.
Epstein Allegations Stir More Controversy
Musk escalated the confrontation further, claiming Trump appeared in the Epstein files, implying a cover-up. Trump responded by threatening serious repercussions if Musk funded political foes, and the new confrontation overshadowed even the economic policy clash.
Political and Ideological Ramifications
This feud underscores a broader political shift. Musk has moved from tech titan to vocal critic of Trump-era policies, aligning with fiscally conservative Republicans and progressive clean-energy advocates alike. He even floated support for a third-party movement and backed Trump’s impeachment online.
Broader Economic Concerns
Independent analysts warn these expansive bills and tariffs could exacerbate deficits, deplete clean-energy momentum, and undermine economic recovery. Musk’s critiques echo those concerns, with Republicans like Senators Rand Paul and Thomas Massie expressing shared fears over the deficit and “pork-filled” legislation.
What Lies Ahead?
As Senate debates loom and Trump eyes July 9 tariff implementation, the stakes are high. Musk remains a disruptive voice against what he calls reckless fiscal policy. Trump, in turn, has hinted at further retaliation but also maintains the policy backers. Tesla’s future, SpaceX’s contracts, and the U.S. economy’s direction all hang in the balance.
Final Takeaway
Elon Musk’s scathing objections to Trump’s trade and spending policies are more than a personal spat, they signal a shift in the nexus of tech influence, political power, and economic policy. With Tesla’s fortunes hanging in the balance and national debates on energy, jobs, and globalization intensifying, this feud may shape more than just headlines, it could alter America’s economic trajectory.
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