Image via Tesla
Tesla CEO Elon Musk and U.S. President Donald Trump are in an escalating feud that has gone public, sending shockwaves through the markets and dragging Tesla shares down 14.3% today, with another 3% drop after hours.
Over the past 48 hours, tensions between the two high-profile figures have flared into open conflict. It began with a Wall Street Journal report on June 4 suggesting Trump was growing frustrated with Musk’s vocal criticism of his latest tax and spending bill, dubbed the “Big Beautiful Bill.” Trump insiders said the former president was “losing patience.”
By the next morning, Trump made his feelings known. At 9:08 a.m. PT on June 5, Trump told reporters he was “very disappointed” in Musk, hinting that the Tesla CEO was reacting to lost electric vehicle tax credits. “Elon and I had a great relationship. I don’t know if we will anymore,” said Trump from the Oval Office.
By late morning, Trump took it further on his social media platform Truth Social, threatening to end government subsidies for Musk’s companies. “The easiest way to save money in our Budget… is to terminate Elon’s Governmental Subsidies and Contracts,” he wrote.
Musk responded shortly after on X with a jab: “Go ahead, make my day…” He went on to claim credit for helping Trump win the last election, accusing him of “ingratitude.”
Things escalated dramatically when Musk posted an unverified claim that Trump appears in Jeffrey Epstein’s files. “That is the real reason they have not been made public,” Musk wrote.
Trump didn’t hold back in his reply, mocking Musk’s recent black eye and calling him self-interested for opposing the bill. Musk fired back, saying the legislation was “passed in the dead of night” and ridiculing its nickname: “In the entire history of civilization, there has never been legislation that both big and beautiful.”
By mid-afternoon, Musk even replied “Yes” to a post calling for Trump’s impeachment and replacement with Senator JD Vance.
The political drama appears to have shaken investor confidence. Tesla’s market value dropped roughly $150 billion by day’s end.
Whether the feud cools off or intensifies, one thing is clear: the former allies have now become public enemies, and everyone is following the latest on X and Truth Social. With Musk and Trump having some similar allies, it’s going to be interesting to see which side gets picked in favour in this dirty public fight.
