Wall Street wiped off US$150 billion from Tesla’s market value after US President Donald Trump posted on Truth Social, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.” The 14.3% plunge marked Tesla’s largest single-day loss in its history.
Minutes after the market closed, Elon Musk responded with a one-word post on X: “Yes,” replying to a suggestion that Trump should be impeached. Despite Republicans holding both chambers of Congress, Musk’s retort ignited further backlash from Trump loyalists.
Only six days before the dramatic fallout, Trump and Musk stood side by side in the Oval Office promising continued cooperation. On Thursday, that dynamic unravelled. “Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump told reporters.
Reacting in real time on X, Musk said, “Without me, Trump would have lost the election,” referencing his nearly US$300 million contribution backing Trump and GOP candidates. “Such ingratitude,” he added, escalating the personal feud.
Musk had recently attacked Trump’s sweeping tax-cut and spending bill, calling it a “disgusting abomination” and urging Congress to “KILL the BILL.” He said he supported cutting electric vehicle tax credits, but not the “mountain of disgusting pork” in the bill.
In response to Musk’s public criticism, Trump suggested the billionaire’s anger stemmed from his White House exit. “He’s not the first,” Trump said. “People leave my administration… then at some point they miss it so badly, and some of them embrace it and some of them actually become hostile.”
Following Trump’s threats, Musk announced he would begin decommissioning SpaceX’s Dragon spacecraft, the only U.S. system capable of sending astronauts to the International Space Station.
Amid rising tensions, Musk polled his 220 million followers: “Is it time to create a new political party in America that actually represents the 80% in the middle?”
The public clash marked Trump’s first major fallout with a top aide since returning to office. Musk had previously served as head of the Department of Government Efficiency, tasked with trimming the federal workforce and spending—yet he exited last week having cut only half a percent of total expenditure.
His pivot to politics has triggered protests at Tesla sites in the U.S. and Europe, with investors worrying about his divided focus. Before the fallout, Musk was frequently present at the White House, often seen with his son and holding sway on Capitol Hill.
With both men known for their egos and social media salvos, analysts had long expected their alliance to combust. “The feud was not entirely unexpected,” said one observer. “Two pugilists in the same ring rarely ends well.”
Reuters
