As of June 6, 2025, the relationship between U.S. President Donald Trump and tech billionaire Elon Musk has deteriorated into a public and political feud, impacting both Washington politics and financial markets.
Origins of the Conflict
The discord began over Trump's proposed "One Big Beautiful Bill Act," a comprehensive tax and spending package. Musk criticized the bill as fiscally irresponsible, predicting it would add $2.4 trillion to the national debt and potentially trigger a recession. He also opposed the bill's cuts to electric vehicle subsidies, which would affect Tesla, and its increased tariffs on foreign goods.
Escalation and Public Fallout
In response to Musk's criticisms, Trump dismissed him as someone who had "lost his mind" and expressed no interest in reconciliation. The feud intensified when Musk suggested forming a new centrist political party and endorsed calls for Trump's impeachment. He also made unverified claims linking Trump to Jeffrey Epstein, further straining their relationship.
Political and Economic Repercussions
The fallout has had significant implications:
Tesla's stock experienced a sharp decline, dropping over 14%, leading to a $33 billion decrease in Musk's net worth.
Trump threatened to terminate government contracts with Musk's companies, including SpaceX.
The "One Big Beautiful Bill Act" is facing increased opposition in the Senate, with some Republicans expressing concerns over its fiscal impact.
Attempts at De-escalation
Despite the tensions, there have been signs of a potential thaw. Musk indicated a willingness to reconcile, influenced by investor Bill Ackman's calls for unity. The White House has scheduled a mediation call with Musk to address the dispute. However, Trump has publicly downplayed the conflict, stating he is focused on legislative matters.
Broader Implications
This feud underscores the fragile alliance between two influential figures in American politics and business. Observers are closely watching for further developments, as the outcome could have lasting effects on U.S. economic policy and the political landscape.
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