NEWS
Trump-Musk feud escalates: What happened? And what comes next?
đ„ What happened?
1. Feud sparks over Trumpâs âOne Big Beautiful Billâ
On June 3, 2025, Elon Musk publicly denounced Trumpâs sweeping spending packageâdubbed the One Big Beautiful Bill Actâcalling it fiscally irresponsible for ballooning the deficit by around $1.5â2.4âŻtrillion and criticizing cuts to EV subsidies . Musk, who had recently stepped down from his government-efficiency role, said he wasn’t shown the draft before it passed .
2. War of words ignites
Trump responded angrily, labeling Musk as âdisappointedâ and threatening to yank government subsidies and contracts from Tesla and SpaceX .
In turn, Musk escalated: he called for Trumpâs impeachment, alleged Trump appears in the Jeffrey Epstein files, and even teased decommissioning SpaceXâs Dragon spacecraftâused by NASA .
3. Market tremors
Tesla shares plunged ~14% in a single day, wiping out approximately $150â152âŻbillion in valuation. Trump Media stock also fell ~8%, dragging Nasdaq down as investors feared regulatory backlash .
4. Contract showdown intensifies
Trump publicly warned of revoking ~$22âŻbillion worth of contracts held by SpaceXâincluding key NASA and DoD deals . Muskâs brief threat to pull the Dragon modules raised alarm in NASA circles; though he backed off hours later .
5. Political ripple effects
The high-stakes feud forced Senate Republicans to reassess Trumpâs spending bill, while prompting internal Republican debate over support for Musk . Figures like Steve Bannon even floated deportation and contract investigations for Musk .
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đź What comes next?
Area Key Question Potential Outcome
De-escalation Will the scheduled peace call between Musk and White House aides lead to a truce? Musk signaled openness to diplomacy after backing away from the Dragon threat . Trump said, âItâs OK⊠never done better.â
Policy & Financing Could Trump actually revoke subsidies or cancel contracts? Such moves would notoriously inflame legal battles and disrupt SpaceX and Tesla initiatives like autonomous vehicles and NASA missions . Congressional Republicans may push back.
Market stability Will markets rebound or stay jittery? Some investors remain bullish on Teslaâs long-term prospects, but concerns persist. Teslaâs robotaxi and autonomous driving efforts still hinge on regulatory approval .
Political alliances Is this a broader shift in the techâRepublican alliance? The rift threatens alignment between âTech Rightâ figures and Trump Republicans. Musk may redirect political support, and Democrats could capitalize on the split .
Media & public response Will Musk face coordinated backlash? Already facing vandalism and protests as part of âTesla Takedownâ, Musk may endure renewed public and political opposition .
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đ§ Bottom Line
The TrumpâMusk feud has moved from policy disagreement to full-blown public combat, with financial markets, government contracts, and partisan politics all feeling the tremors. Whether both sides step back via diplomacy, or entrench their confrontation, will shape not just corporate valuations but also the future interface between big tech and U.S. governance.
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