1 month Ago
The spat intensified when Musk wrote on X that Trump would have lost the election without him and typed "thanks for nothing" to what he called "ingratitude." Trump swiftly hit back on Truth Social, calling Musk "annoying and crazy." The dispute escalated when Trump said he would endeavor to cancel government contracts with Musk's firms.
In response, Musk has threatened to scrap the Dragon spacecraft, which is essential for US space missions. But he retracted that after he was told to de-escalate the situation. Musk replied, "We are not going to take Dragon apart," indicating that the tensions were coming down a little, but were still simmering.
Budget Discord Erupts Into Fallout
The catalyst for the fight is Trump's budget proposal, which calls for massive tax cuts, a surge in defense spending, and an infusion of cash for both immigration and border security. Described as the "big beautiful bill," it runs more than a thousand pages long and may raise the US budget deficit by $2.4 trillion.
The bill was opposed by Musk, who has been lobbying against the type of government spending the bailout would provide. He previously ran a task force called DOGE that was focused on reducing bureaucracy. Two million civil servant positions were eliminated and several programs were defunded under his administration. Yet even with these moves, the quest to save $1 trillion has fallen short.
Shattered Relationships and Financial Pains
The two had tensions that had been quietly simmering for some time prior to Musk's formal exit from the White House last week, when he got a shiny golden key. Even as Trump held it aloft, Musk slammed the proposed bill as "a disgusting monstrosity."
Trump says Musk didn't quit on his own, but that he ousted Musk out of jealousy and a change in attitude. "We've had a great relationship, but I don't know that that's going to continue." Trump said to reporters.
The dispute has financial implications, too. Musk was one of the biggest donors to Trump's campaign, giving more than $250 million and participating in events to back Trump (including offering up $1 million daily prizes to voters in Pennsylvania). Trump's public comments now recast that support as irrelevant to victory, arguing he would have won the state on his own anyway.
As the battle intensifies, it has already had an impact on Musk's business. Tesla saw a nearly 14 percent slide in its stock price, a $150 billion drop in market value in a single day.
