Brief Summary
The implosion of the political partnership between Donald Trump and Elon Musk is marked by a public war of words. Musk criticises Trump's spending bill and makes allegations regarding the Epstein files. This fallout has significant financial implications for Musk, with Tesla shares plummeting. The situation could influence political spending and potentially lead to the formation of a new political party.
- Trump and Musk's relationship deteriorates rapidly over a spending bill dispute.
- Musk alleges Trump is implicated in the Epstein files.
- Musk's wealth decreases significantly due to the fallout, with Tesla shares dropping.
- Musk may redirect political spending and potentially start his own political party.
Trump and Musk's Public Feud
A once-strong political alliance between Donald Trump and Elon Musk has collapsed into a bitter public dispute. President Trump expressed surprise and disappointment at Musk's criticism of his legislation. Musk retaliated on X, accusing Trump of being ungrateful, predicting a recession due to his tariffs, and alleging his involvement in the Jeffrey Epstein case.
The Spending Bill Controversy
The disagreement centres around a spending bill, with Trump claiming Musk was familiar with its details and initially supportive. Musk refuted this, stating he was never shown the bill and that it was passed secretively. Trump further accused Musk of "going crazy" after Trump planned to remove the EV mandate. Musk responded by calling Trump a liar and escalating the conflict with the Epstein files allegation.
Epstein Files Allegations
Musk escalated the feud by suggesting that Donald Trump is withholding the release of the Jeffrey Epstein files because he is named in them. He implied this was the "real reason" the files have not been made public. Musk had previously been aligned with the administration to cut government spending, but now criticises Trump's spending bill for increasing the budget deficit. Trump has suggested terminating Musk's government contracts and subsidies as a cost-saving measure.
Financial Implications for Musk
The public fallout has had significant financial consequences for Elon Musk. Tesla shares have dropped by 14%, equating to a loss of approximately $20 billion for Musk in a single day. Since the peak of their "bromance," Tesla shares are down by about 40%, costing Musk around $70 billion. Potential losses for SpaceX, which has significant US government satellite program contracts, could be even greater. It's estimated that Musk has lost over $100 billion since the height of his relationship with Trump.
Political Ramifications and Future Possibilities
This feud could have important consequences for the Trump administration, especially given Musk's previous close advisory role. Musk has even suggested Trump should be impeached and replaced with the vice president. Musk's influence stems from his ownership of X and his financial resources. His previous pledge of $100 million to political groups controlled by Trump is now uncertain. Musk may instead target representatives and senators who support the spending bill. He has also floated the idea of starting his own political party, which has garnered significant interest online.
