The once-strategic alignment between former U.S. President Donald Trump and tech billionaire Elon Musk has come to an abrupt end. Trump has reportedly retired his Tesla Model S amid rising tensions with Musk, signaling a clear break in their public and political relationship.
🔍 What Triggered the Rift?
The fallout stems from Musk’s sharp criticism of Trump’s latest tax-and-spending proposal, which he labeled a “disgusting abomination.” Trump responded by calling Musk “crazy” and accused him of suffering from “Trump Derangement Syndrome.”
💼 $22 Billion in Federal Contracts at Risk
The dispute has escalated into the business arena. Trump has suggested he may reconsider SpaceX’s federal contracts, which total over $22 billion, including key NASA missions. Musk initially hinted at withdrawing cooperation but later appeared to walk back the comment.
📉 Market Reaction
The feud rippled through financial markets. Tesla stock dropped over 14% intraday, briefly shedding $150 billion in market value before partially recovering. Investor sentiment remains fragile amid the political uncertainty.
🗳️ Political & Financial Repercussions
Adding to the complexity, reports indicate Musk had contributed $300 million to Trump’s 2024 campaign. The funding channel now appears frozen, with broader implications for both campaign financing and Musk’s long-term government partnerships.
