Once allies, now enemies — Elon Musk and Donald Trump have gone from trading compliments to trading blows.
What started as a policy disagreement has exploded into a bitter public feud between two of the most powerful men in America.
Traders on Kalshi think there’s a chance (14%) that Musk could be ousted as the Tesla CEO and, perhaps stranger, that he could back a Democrat for office (31%).
Here’s what’s behind the clash, what’s at stake, and where this war of egos might be headed.
The Spark
Elon Musk torched Trump’s signature spending bill, calling it a “disgusting abomination.” His beef? The bill guts EV tax credits — directly targeting Tesla’s bottom line — and would add trillions to the national debt. Musk didn’t hold back, and the knives came out.
Goodbye, Government Gig
Musk had just stepped down from his White House advisory role heading up the so-called Department of Government Efficiency (DOGE). That move, plus his public blast at the bill, made it clear — he was no longer playing ball with Team Trump.
Trump Fires Back
Trump clapped back fast. He said Musk had “lost his mind” and brushed off any hope of reconciliation. Behind closed doors, Trump was reportedly furious Musk went public — especially since Elon helped him win over tech and finance voters in 2024.
The Epstein Bombshell
Musk escalated by implying Trump’s name was in sealed Jeffrey Epstein documents. He didn’t offer proof, but the implication sent shock waves — and likely burned every last bridge. That wasn’t a jab. That was a tactical nuke.
Musk Calls for Impeachment
Adding fuel to the fire, Musk publicly said Trump should be impeached. He claimed Trump “wouldn’t have won” without his support, and now the President was betraying the very industries Musk helped champion.
Money Talks, and Tesla Bleeds
Tesla shares cratered 14% — wiping out $150 billion in market value and knocking $33 billion off Musk’s net worth. The market’s reaction was clear: picking a fight with a sitting president isn’t great for business.
Trump Threatens Revenge
Trump reportedly wants to cancel government contracts with Musk’s companies — including SpaceX and Starlink. Musk responded by threatening to ground the Dragon capsule program that supports NASA missions. He later walked that back. Barely.
Can They Call a Truce?
Investor Bill Ackman stepped in, urging both men to stop the bleeding. Musk signaled he might chill the rhetoric, but Trump isn’t biting. The White House says there’s no detente on the table — at least not yet.
What This Means
This isn’t just a spat. It’s a power struggle with real consequences — for markets, tech, policy, and even space exploration. It’s Trump vs. Musk now. And neither man is used to losing.
