NEWS
Trump-Musk feud escalates: What happened? And what comes next?
🥊 What happened?
1. Feud sparks over Trump’s “One Big Beautiful Bill”
On June 3, 2025, Elon Musk publicly denounced Trump’s sweeping spending package—dubbed the One Big Beautiful Bill Act—calling it fiscally irresponsible for ballooning the deficit by around $1.5–2.4 trillion 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 “disappointed” and threatening to yank government subsidies and contracts from Tesla and SpaceX .
In turn, Musk escalated: he called for Trump’s impeachment, alleged Trump appears in the Jeffrey Epstein files, and even teased decommissioning SpaceX’s Dragon spacecraft—used by NASA .
3. Market tremors
Tesla shares plunged ~14% in a single day, wiping out approximately $150–152 billion 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 ~$22 billion worth of contracts held by SpaceX—including key NASA and DoD deals . Musk’s 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 Trump’s 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, “It’s OK… never done better.”
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 Tesla’s long-term prospects, but concerns persist. Tesla’s robotaxi and autonomous driving efforts still hinge on regulatory approval .
Political alliances Is this a broader shift in the tech‑Republican alliance? The rift threatens alignment between “Tech Right” 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 “Tesla Takedown”, Musk may endure renewed public and political opposition .
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🧠Bottom Line
The Trump–Musk 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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