Washington D.C. (National Times): A once-strategic alliance between U.S. President Donald Trump and Tesla CEO Elon Musk has exploded into a bitter and deeply personal feud, with staggering political and financial implications. The clash, which escalated dramatically on Thursday, has not only shaken Tesla’s market value, wiping out $152 billion in a single day, but now also threatens the passage of Trump’s flagship budget legislation.
Musk’s Epstein Allegation Shocks Washington
The conflict reached a boiling point when Musk, in a stunning social media post on X, alleged that Trump’s name is “in the Epstein files”, referring to the late financier Jeffrey Epstein, whose ties to powerful figures have long been shrouded in mystery and controversy. Musk cited a decades-old quote from Trump praising Epstein’s social lifestyle, adding a taunting farewell: “Have a nice day, DJT!”
This accusation marked a new, personal low in the feud, drawing sharp reactions from Trump’s base and intensifying a political firestorm.
Breakdown Began with Budget Dispute
The tensions originally reignited after Musk publicly criticized Trump’s massive $1.6 trillion budget bill, calling it fiscally irresponsible. Trump, speaking during a joint press conference with German Chancellor Friedrich Merz, expressed his disappointment:
“I’m very disappointed in Elon. He knew every aspect of this bill… and he never had a problem until after he left.”
Musk, who recently resigned from the quasi-official Department of Government Efficiency, disputed Trump’s claim: “False. This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!”
Government Contracts and SpaceX Threats
The feud has already prompted Trump to threaten the termination of Musk’s federal contracts and subsidies, particularly those supporting SpaceX and Tesla’s electric vehicle programs. In retaliation, Musk issued a dramatic warning, hinting that SpaceX could decommission its Dragon spacecraft, which recently rescued astronauts from the International Space Station. Such a move could cripple NASA missions and upend America’s space capabilities.
Trump responded on Truth Social, calling Musk “crazy” and claiming he had stripped away an “EV mandate” that supposedly forced consumers to buy electric cars.
“Elon was wearing thin… I took away his EV Mandate… and he just went CRAZY,” Trump wrote.
Musk fired back on X, calling the claim a “lie” and responding sarcastically to users highlighting Trump’s post: “Such an obvious lie. So sad.”
Musk Calls for Impeachment, Backs JD Vance
Taking the feud to the next level, Musk endorsed a call for Trump’s impeachment and support for JD Vance as his potential successor. Musk reposted a message from influencer Ian Miles Cheong, who declared: “Trump should be impeached and JD Vance should replace him.” Musk simply added: “Yes.”
Musk also launched an online poll proposing a new political party, another sign that the billionaire may be considering a broader role in reshaping the U.S. political landscape.
Tesla Takes Massive Hit
The market responded swiftly to the drama, with Tesla shares plunging 14% on Thursday, cutting Elon Musk’s net worth by $8.73 billion, according to the Bloomberg Billionaires Index. The drop left Tesla with a market value of around $900 billion, down sharply from earlier highs.
Trump’s Budget Bill in Jeopardy
The feud may also derail Trump’s signature legislation, which he has dubbed the “big, beautiful bill.” The bill, which contains historic tax cuts and expense reductions, is now under intense scrutiny after Musk and other critics accused it of lacking transparency and threatening the economy.
Musk wrote: “Congress is spending America into bankruptcy!”
According to the Congressional Budget Office, the proposed bill could add $2.4 trillion to the U.S. deficit over the next decade.
Fallout and Future
With federal contracts, national security operations, and a key budget bill hanging in the balance, the Trump-Musk showdown is no longer just a political feud—it’s a high-stakes confrontation with real-world consequences. Analysts warn that if the conflict continues, it could redefine power dynamics in Washington, reshape the 2024 election landscape, and fracture the conservative base ahead of a critical election year.
For now, neither side is backing down, and the battle between Trump and Musk is only just beginning.
