Trump-Musk alliance collapses as threats, accusations, and market turmoil shake Washington and Wall Street. What’s next for America’s power duo?
A Fractured Alliance Shocks Washington
The once-formidable partnership between President Donald Trump and tech billionaire Elon Musk imploded this week, sending shockwaves through the political and business worlds. Their public split, which began with policy disagreements, has now escalated into a personal and political battle that threatens to reshape alliances in Washington and reverberate across global markets.
The Spark That Ignited the Feud
Tensions erupted after Musk denounced Trump’s signature budget bill, calling it a “disgusting abomination” and accusing the president of betraying the efficiency reforms Musk had championed in government. Trump, blindsided by the criticism, expressed his disappointment during a White House meeting, stating, “Elon and I had a great relationship. I don’t know if we will anymore”. Musk’s public rebuke marked a sharp turn from the mutual praise exchanged just days earlier during Musk’s ceremonial departure from his government advisory role.
Fallout Hits Markets and Musk’s Empire
The feud quickly spilled onto social media, with Musk claiming credit for Trump’s 2024 election victory and Trump retorting that Musk had “worn out his welcome” in the administration. The president then threatened to terminate Musk’s lucrative government contracts, a move that sent Tesla’s stock plunging by up to 18% and cast uncertainty over SpaceX’s NASA partnerships. Musk responded by announcing — then retracting — plans to decommission SpaceX’s Dragon spacecraft, underscoring the high stakes for both sides.
Political and Personal Attacks Escalate
As the dispute intensified, Musk took to X (formerly Twitter) to suggest Trump should be impeached and alleged, without evidence, that Trump’s name appeared in unreleased Jeffrey Epstein files. Trump’s allies offered only lukewarm defenses, while the president himself pivoted to touting his legislative achievements, signaling a desire to move past the drama but not before warning of further reprisals against Musk’s business interests.
Ripple Effects in Congress and Beyond
The feud has left congressional Republicans scrambling, as Musk’s influence threatens to erode support for Trump’s legislative agenda. Democrats, meanwhile, are content to watch from the sidelines, recognizing that the infighting could weaken their political rivals. With Musk hinting at supporting insurgent candidates and possibly forming a new political entity, the rift could have lasting repercussions for both parties.
What Comes Next for Trump and Musk
With neither side showing signs of backing down, observers expect the feud to dominate headlines and distract from other policy debates. Trump retains the power of the presidency for another three and a half years, but Musk’s vast resources and social media reach ensure he will remain a formidable adversary for years to come. As both men trade barbs and threats, Washington and Wall Street are bracing for further turbulence in this unprecedented clash of titans.
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