In a striking escalation of tensions between two of the most influential figures in American business and politics, President Donald Trump is reportedly planning to sell his Tesla and sever all remaining ties with Elon Musk. The decision, confirmed by senior administration officials on Friday, underscores the growing rift between Trump and the Tesla and SpaceX CEO — a feud that could carry serious financial and political repercussions for both parties.
According to a White House official speaking on condition of anonymity, Trump’s decision to part ways with his red Tesla — a vehicle he purchased in March as a gesture of goodwill toward Musk — signals a definitive end to any reconciliation efforts. The car, once viewed as a symbolic endorsement of Musk’s entrepreneurial influence, will soon be on the market as Trump “no longer sees value” in maintaining a relationship with the billionaire tech mogul.
This move comes just days after Musk publicly de-escalated an earlier threat to immediately halt SpaceX’s Dragon missions, which are crucial to NASA’s operations aboard the International Space Station. The apparent cooling of rhetoric from Musk was met with public encouragement from investor Bill Ackman, who pleaded with both sides to reconcile “for the good of the country.” Musk responded cryptically: “You’re not wrong.”
Nevertheless, Trump's decision appears final — and consequential.
Musk’s companies, most notably SpaceX, have long benefited from lucrative federal contracts, valued in the billions. Trump’s administration had positioned itself as a supporter of Musk’s ventures, which aligned with the president’s broader agenda of American innovation and space dominance. But now, that support is in jeopardy. Trump has reportedly threatened to review and potentially terminate existing federal agreements with Musk's firms.
The stakes are equally high for Trump. Musk played a pivotal role in backing Trump’s 2024 reelection bid, contributing an estimated $275 million and pledging a further $100 million to support pro-Trump causes in the 2026 midterm elections. With relations now frayed, those future contributions remain in limbo — a financial blow that could reverberate across Republican fundraising efforts.
The public and personal clash between Trump and Musk reflects broader uncertainties at the intersection of politics and tech, where alliances are often transactional and fleeting. As both men double down on their respective positions, markets, donors, and policymakers alike are watching closely to see what the fallout will mean for the economy, space exploration, and the 2026 political landscape.
Whether this feud marks a temporary spat or a permanent rupture, one thing is clear: when Trump and Muskrump and Musk c clash, the c far from ordinary.