1. Feud Intensifies, Then Pauses
Trump warns of “serious consequences” if Musk backs Democrats in the upcoming 2026 midterms—threatening to pull federal contracts and subsidies from his companies.
Aide-level peace talks underway: Representatives from both camps have reportedly engaged in dialogue, leading to a fragile truce—though nothing is solidified.
2. Root Causes of the Rift
Musk slammed Trump’s tax-and-spend legislation as a “disgusting abomination.” He even floated starting his own centrist party—the “America Party”—with strong support from his X audience.
A deleted but inflammatory X post by Musk, alleging Trump is mentioned in the “Epstein files,” escalated tensions even further.
3. Consequences and Reactions
Tesla shares dipped temporarily (about 14%), though analysts say Musk’s core ventures, such as AI and robotaxis, remain largely unaffected.
Musk’s father, Errol, has weighed in: describing the feud as “a mistake,” noting Elon is stressed, and predicting Trump will ultimately come out on top.
4. Current Status: Ceasefire in Flux
Both men have stepped back from direct insults—for now. Musk purged the more incendiary posts, and Trump hasn't made new public jabs recently.
Still, Trump has categorically said, "no reconciliation," and advised aides not to reach out.
🧭 What to Watch Next
Potential fallout on Musk’s ventures: Trump may follow through on pulling contracts or subsidies—will that materialise?
The “America Party” poll: Musk’s new centrist party effort could shift political dynamics depending on how seriously it’s pursued.
Aides’ negotiation progress: The peace talks may reveal whether this is a temporary lull or the start of cooled relations.