06-06-2025

Trump-Musk Alliance Explodes Into Costly Feud

Date: 06-06-2025
Sources: cbsnews.com: 1 | cnbc.com: 4 | edition.cnn.com: 6 | france24.com: 1 | nytimes.com: 7 | scmp.com: 2
Image for cluster 4
Image Source:

Source: edition.cnn.com

Image content: The image shows a group of protesters standing in front of a building labeled “City of Marion.” They hold signs with messages such as “People before profits,” “Trees not Teslas,” and “95% said no, Joe,” indicating a demonstration about local political or environmental issues.

Summary

A once-close political and business alliance between President Donald Trump and Elon Musk collapsed into a rapid, high-profile feud over a sweeping Republican tax-and-spending bill and broader policy rifts. Musk’s sharp criticism of deficits, tariffs, and cuts to EV incentives triggered Trump’s threats to cancel federal contracts and subsidies tied to Tesla and SpaceX, jolting markets and spooking Republicans ahead of key legislative votes. Attempts at mediation faltered after Musk, without evidence, alleged Trump appears in unreleased Epstein files, further inflaming tensions. The clash overshadowed German Chancellor Friedrich Merz’s otherwise successful White House visit, exposed fissures within the GOP coalition, and raised legal, regulatory, and operational risks for Musk’s companies while testing Trump’s party leadership and legislative agenda. Analysts warn both figures retain leverage to harm the other—through federal power, contracts, investigations, platforms, and funding—portending continued volatility with national political and economic stakes.

Key Points

  • Feud sparked by Musk’s attack on GOP bill over deficits, tariffs, and EV incentive cuts; Trump threatened to revoke federal contracts and subsidies.
  • Musk escalated by suggesting impeachment and alleging Trump appears in unreleased Epstein files, derailing reconciliation efforts.
  • Market reaction was sharp, with Tesla plunging; analysts warned of regulatory and contract risks for Tesla and SpaceX under the Trump administration.
  • Republicans sought distance to protect the bill and midterms, while Democrats saw opportunity; Trump still holds party dominance but Musk retains money and media leverage.
  • Merz’s White House visit was diplomatically successful despite the distraction, reinforcing U.S.-German ties and NATO defense goals.

Articles in this Cluster

Trump and Elon Musk trade insults and accusations as public feud reaches new heights - CBS News

President Trump and Elon Musk’s relationship collapsed publicly amid Musk’s sharp opposition to Republicans’ sweeping tax and budget bill, which the CBO says would add $2.4 trillion to deficits. Trump accused Musk of turning against him over cuts to EV incentives, threatened to cancel Musk’s federal contracts, and claimed he’d pushed Musk out of the administration. Musk fired back that he wasn’t consulted on the bill, supported calls for Trump’s impeachment, asserted Trump couldn’t have won without his support, and alleged Trump’s name appears in unreleased Jeffrey Epstein files. Tesla shares plunged after Trump’s contract threat; Musk briefly said SpaceX would decommission Dragon before reversing. The feud overshadowed Trump’s White House meeting with German Chancellor Friedrich Merz, while GOP leaders continued advancing the bill.
Entities: Donald Trump, Elon Musk, Republican tax and budget bill, Congressional Budget Office (CBO), EV incentivesTone: urgentSentiment: negativeIntent: inform

Musk vs Trump dominated, yet Germany's Merz walked away with a win

German Chancellor Friedrich Merz’s first White House visit was overshadowed by a public spat between President Trump and Elon Musk, but it was still viewed as a success for Merz. The distraction helped steer attention away from contentious issues while Merz advanced key goals: reinforcing U.S.-German ties, urging continued U.S. support for Ukraine, addressing tariffs, and highlighting Germany’s increased defense spending—aligned with Trump’s push for higher NATO targets. Gestures like gifting Trump his grandfather’s birth certificate and stressing shared history underscored the relationship. Sensitive topics like Germany’s far-right AfD were avoided. Observers called the trip a “home run,” noting constructive rapport and plans for a Trump visit to Berlin.
Entities: Friedrich Merz, Donald Trump, Elon Musk, U.S.-German relations, Ukraine supportTone: analyticalSentiment: positiveIntent: inform

Nervous Republicans flee Trump-Elon Musk blast radius

Republicans are alarmed as a public feud erupts between President Trump and Elon Musk over Trump’s flagship fiscal bill, which cuts taxes by $3.7 trillion and spending by $1.3 trillion. Musk, once a major Trump ally and face of the federal downsizing effort, is now threatening to spend heavily to oust Republicans who back the bill and may even support Democrats. Trump allies urge retaliation, including scrutinizing Musk’s contracts and background. The clash—fueled by personal insults, policy disputes, and Musk’s claims of an impending recession—threatens GOP unity ahead of midterms, with lawmakers trying to avoid taking sides. Democrats see advantage, while some Republicans hope the rift will fade, though its duration and intensity could determine the political damage.
Entities: Donald Trump, Elon Musk, Republican Party, Democratic Party, Trump fiscal billTone: urgentSentiment: negativeIntent: inform

Trump-Musk feud draws reactions from billionaires, politicians and pundits

President Trump and Elon Musk abruptly turned from allies to adversaries, trading public attacks after Musk criticized a Republican tax-and-spending bill. Trump threatened to cut billions in government contracts to Musk’s companies, while Musk claimed Trump wouldn’t have won without his support. The feud sparked broad reactions: Bill Ackman and Rep. Jim Jordan urged reconciliation; Steve Bannon called for seizing SpaceX under the Defense Production Act; Mark Cuban and Andrew Yang floated a new centrist political movement; Ian Bremmer said Trump is “more powerful than elon, but far less competent.” Markets reacted sharply, with Tesla shares plunging over 14% (about $152 billion in value). Analysts warned the clash could jeopardize Tesla’s regulatory prospects on autonomy under the Trump administration, though some, like Wedbush’s Dan Ives, maintained a long-term bullish view. Critics and former bulls argued the rift undermines expectations of favorable federal treatment for Tesla and could complicate SpaceX’s standing despite its strategic importance.
Entities: Donald Trump, Elon Musk, Tesla, SpaceX, Republican tax-and-spending billTone: analyticalSentiment: negativeIntent: inform

Trump won't call Elon Musk, White House official says

A senior White House official said President Donald Trump is not interested in speaking with Elon Musk to resolve their escalating feud. The clash stems from Musk’s criticism of Trump’s proposed tax bill and Trump’s threat to cut federal contracts with Musk’s companies, including SpaceX. Musk briefly said SpaceX would decommission its Dragon spacecraft in response, then walked it back. Trump dismissed the idea of a call, saying he’s “not even thinking about Elon,” while his chief of staff said there are no plans for a discussion, though another official indicated a desire to de-escalate.
Entities: Donald Trump, Elon Musk, White House, SpaceX, Dragon spacecraftTone: analyticalSentiment: negativeIntent: inform

Epstein files: Allies tried to broker Trump-Musk peace but a personal allegation complicated things | CNN PoliticsClose icon

Allies tried to reconcile President Donald Trump and Elon Musk amid a growing feud over Trump’s domestic agenda bill, but efforts collapsed after Musk posted on X alleging Trump appears in unreleased “Epstein files,” without evidence. The clash escalated as Trump suggested ending Musk’s government contracts, while Musk called for Trump’s impeachment and briefly threatened to decommission SpaceX’s Dragon spacecraft before walking it back. White House aides likened the feud to a “divorce,” and Press Secretary Karoline Leavitt dismissed Musk’s claims as an “unfortunate episode.” Some prominent figures, including Bill Ackman, urged both men to make peace.
Entities: Donald Trump, Elon Musk, Epstein files, SpaceX Dragon spacecraft, White HouseTone: urgentSentiment: negativeIntent: inform

How ‘Trees not Teslas’ campaign in a small Australian city turned into a tirade against Elon Musk | CNNClose icon

A local campaign in Tonsley, South Australia, to preserve about 60 mature trees morphed into a broader backlash against Elon Musk as residents opposed a proposed Tesla battery recycling plant and showroom. The Marion Council’s consultation drew hundreds of anti-Musk comments—many invoking extremist labels—with 95% of over 900 respondents rejecting plans to prepare the contaminated site for sale. Despite this, the council voted 8-3 to advance the project, citing 100 potential jobs and redevelopment of unusable, TCE-contaminated land. Opponents, including the “Trees Not Teslas” group and the Conservation Council of South Australia, argue the trees help contain toxins and provide vital habitat, and that sapling replacements are inadequate. The dispute reflects global anti-Musk sentiment amid falling Tesla sales in Australia and broader political controversies, even as South Australia has previously benefited from Musk’s energy projects. The proposal now rests with the state government for approval.
Entities: Elon Musk, Tesla, Tonsley, South Australia, Marion Council, Trees Not TeslasTone: analyticalSentiment: negativeIntent: inform

The Musk-Trump fight blows up a critical alliance in American politics | CNN PoliticsClose icon

Elon Musk’s public feud with President Donald Trump has shattered a uniquely close candidate-donor alliance that heavily influenced the 2024 election. Musk poured over $290 million into GOP efforts, led a coordinated ground game via his America PAC under new FEC rules, and leveraged X to amplify pro-Trump messaging. His PAC spent nearly $100 million on canvassing and field operations, alongside aggressive digital outreach and controversial voter sweepstakes. While some factors also aided Trump—such as assassination attempts and Democratic turmoil—operatives say Musk’s role was significant, though hard to quantify. After taking a high-profile government efficiency role and later criticizing Trump’s legislative agenda, Musk’s influence waned, culminating in a public rupture. Recent setbacks, including a costly loss in Wisconsin’s Supreme Court race, further question his ongoing political clout.
Entities: Elon Musk, Donald Trump, America PAC, Republican Party (GOP), Federal Election Commission (FEC)Tone: analyticalSentiment: neutralIntent: analyze

Timeline of Elon Musk and Donald Trump’s feud | CNN BusinessClose icon

Over 72 hours, a public rift erupted between President Donald Trump and Elon Musk over Trump’s sweeping tax and domestic policy bill. Musk, previously a close ally and frequent White House presence, called the bill a “disgusting abomination,” then amplified past Republican warnings about deficits, intensifying GOP tensions. Trump and his allies hit back online, and Trump floated ending federal contracts with Musk’s companies. The clash marks a rapid breakdown in their relationship, with developments continuing to unfold.
Entities: Elon Musk, Donald Trump, CNN Business, Republican Party, federal contractsTone: urgentSentiment: negativeIntent: inform

Trump feared a fight with Musk could undermine his signature bill. Then their feud erupted | CNN BusinessClose icon

CNN reports that a long-simmering rift between President Donald Trump and Elon Musk erupted publicly just as Trump’s economic agenda hinges on a fragile, high-stakes legislative push. Musk’s attacks on Trump’s sweeping “One Big Beautiful Bill”—especially its deficit impact—and on tariffs complicated delicate Senate negotiations and alarmed the White House, which feared a feud could endanger Republican support. While Trump largely avoided direct escalation to protect the bill’s prospects, he privately fumed and signaled potential repercussions for Musk’s federal contracts. Speaker Mike Johnson urged de-escalation as he shepherds the bill through the Senate. Despite steady economic data and jobs growth that the White House cites to rebut critics, Musk’s influence, political threats, and potential leverage through his businesses pose a real risk to Trump’s agenda amid looming trade talks and tight deadlines.
Entities: Donald Trump, Elon Musk, One Big Beautiful Bill, U.S. Senate, White HouseTone: analyticalSentiment: negativeIntent: inform

Who holds the cards in Trump vs. Musk? Trump, but … | CNN PoliticsClose icon

CNN analysis argues Trump still holds dominant sway within the GOP amid his feud with Elon Musk, but dismissing Musk would be costly. While most Republican power brokers would back Trump if forced to choose, Musk retains substantial influence: strong favorability among Republicans, popularity for his DOGE spending cuts, vast personal wealth, and control of X, which can shape narratives and politics. However, GOP loyalty to Trump is deeper and more durable; prolonged attacks from Trump could erode Musk’s standing with Republicans. The piece concludes that a full rupture would create real tensions for the party, as Musk can fund challengers, amplify allies, and pressure Republicans, even if Trump remains the central figure.
Entities: Donald Trump, Elon Musk, Republican Party (GOP), CNN, X (formerly Twitter)Tone: analyticalSentiment: neutralIntent: analyze

Musk accuses Trump of being named in Epstein files as public row worsens

Elon Musk escalated a public feud with President Donald Trump by claiming—without evidence—that Trump is named in government files related to Jeffrey Epstein. Musk, who recently left a White House advisory role and donated $300 million to Trump’s campaign, also suggested Trump should be impeached and criticized his tariff policies. The White House dismissed Musk’s remarks as stemming from policy disagreements. Democrats seized on the accusation to demand full release of Epstein-related documents, while no official source has confirmed Trump appears in the files. Past reports show Trump flew on Epstein’s jet several times in the 1990s but found no evidence he visited Epstein’s island.
Entities: Elon Musk, Donald Trump, Jeffrey Epstein, White House, DemocratsTone: analyticalSentiment: negativeIntent: inform

8 Ways Elon Musk and Trump Could Inflict Pain on Each Other - The New York Times

The feud between President Trump and Elon Musk has shattered their alliance and could escalate. Musk could: fund campaigns against Republicans and withhold pledged support; use X to rally opposition and stoke impeachment talk; allege damaging insider claims (e.g., Epstein files); and disrupt government operations by threatening SpaceX services. Trump could: cut billions in federal contracts to Musk’s companies; push investigations into Musk’s immigration status and drug use; revoke his security clearance, hampering SpaceX work; and use executive power to target Musk’s projects. The clash risks political, financial, and operational fallout for both.
Entities: Elon Musk, Donald Trump, SpaceX, X (formerly Twitter), Republican PartyTone: analyticalSentiment: neutralIntent: analyze

Buildup to a Meltdown: How the Trump-Musk Alliance Collapsed - The New York Times

The article details the rapid collapse of the once-close alliance between President Trump and Elon Musk, triggered by Trump’s abrupt withdrawal of Jared Isaacman—Musk’s ally and SpaceX partner—as NASA nominee after learning of Isaacman’s donations to Democrats. Despite prior awareness of those donations, Trump reversed course, dismissing Musk’s defense and deepening tensions already strained by staffing clashes and policy disagreements. In the aftermath, Musk publicly criticized a Republican spending and tax bill, warning about deficits, and then escalated by attacking Trump directly on X, hinting at impeachment and predicting recession from tariffs. Trump retaliated by downplaying Musk’s support and threatening to cancel federal contracts with Musk’s companies. Attempts at de-escalation by Musk met a cool White House, signaling a decisive rupture driven by loyalty concerns, policy rifts, and personal grievances.
Entities: Donald Trump, Elon Musk, Jared Isaacman, SpaceX, NASATone: analyticalSentiment: negativeIntent: inform

It’s Getting Harder for Trump to Keep the Gang Together - The New York Times

The article argues that Elon Musk’s public break with President Trump signals broader strain within Trump’s expanded 2024 coalition. Trump’s second-term base includes more young, nonwhite, and anti-woke/anti-establishment voters and elites, whose priorities differ from traditional GOP and populist factions. Early policy moves—sweeping tariffs, aggressive deportations, hostility to higher education and high-skilled immigration, and defiance of courts—are alienating segments of this coalition. Musk’s split, framed around the GOP’s debt-expanding tax-and-spending bill, highlights a resurging politics of deficits as high interest costs and mounting debt constrain sweeping agendas. These fiscal pressures threaten not only Republican unity—once sustained by tax cuts without entitlement pain—but also Democratic cohesion, which has benefited from deficit-financed priorities. The piece warns that, as in the early 1990s, rising debt service could reorder political alliances and fracture coalitions on both sides.
Entities: Donald Trump, Elon Musk, Republican Party, Democratic Party, U.S. federal debtTone: analyticalSentiment: neutralIntent: analyze

Justices Grant DOGE Access to Social Security Data and Let the Team Shield Records - The New York Times

The Supreme Court, in two unsigned emergency orders, allowed Elon Musk’s Department of Government Efficiency (DOGE) access to sensitive Social Security Administration records and shielded DOGE from turning over internal documents in a FOIA lawsuit. The rulings pause lower-court limits that required training, background checks, and data redaction, letting DOGE access personal data immediately. The court’s three liberal justices dissented, warning of privacy risks and criticizing the court’s deference to the administration’s emergency requests. The FOIA case, brought by CREW, hinges on whether DOGE functions as an agency subject to public records laws. The decisions reflect lingering impacts of Musk’s short-lived government role and ongoing legal battles over privacy, transparency, and executive power.
Entities: Supreme Court, Elon Musk, Department of Government Efficiency (DOGE), Social Security Administration, FOIATone: analyticalSentiment: neutralIntent: inform

Timeline of Elon Musk and Trump's Fight, With Key Posts and Statements - The New York Times

A testy exchange between President Trump and Elon Musk erupted after Trump, in the Oval Office, derided Musk’s criticism of a domestic policy bill cutting EV and solar incentives while leaving oil and gas subsidies intact. Trump suggested their relationship was over, claimed he’d have won 2024 without Musk’s money, and threatened to end Musk’s government subsidies and contracts. Musk fired back on X, denying prior knowledge of the bill, saying Trump owed his victory to Musk’s support, criticizing deficit backtracking and tariffs, and even hinting at forming a new political party. He escalated by alleging, without evidence, that Trump appears in unreleased Epstein files, briefly threatened to decommission SpaceX’s Dragon spacecraft after Trump’s subsidy threat, and amplified calls for Trump’s impeachment in favor of JD Vance. Trump defended the bill as historic cost-cutting and tax relief. By late night, Musk struck a more conciliatory tone, calling for peace between them.
Entities: Elon Musk, Donald Trump, New York Times, SpaceX Dragon, EV and solar incentivesTone: urgentSentiment: negativeIntent: inform

Trump and Musk’s Relationship Melts Down in Spectacular Fashion - The New York Times

Elon Musk and President Trump’s alliance imploded in a highly public, hourslong spat across their platforms, X and Truth Social. Triggered by Musk’s anger over a sweeping domestic policy bill, Musk claimed Trump owed his 2024 victory to him and later alleged Trump appears in “Epstein files,” escalating the feud. Trump responded by threatening to cut Musk’s government subsidies and contracts. Allies and onlookers piled on as Musk unfollowed key Trump figures; a brief peace plea from Kanye West failed. The rupture, after recent public camaraderie, signals a potentially lasting break with political, financial, and legal implications for Musk’s companies and Trump’s administration.
Entities: Elon Musk, Donald Trump, X (formerly Twitter), Truth Social, Epstein filesTone: urgentSentiment: negativeIntent: inform

Trump’s Relationship With Musk Remains Icy as Public Spat Goes Private - The New York Timesbars

President Trump and Elon Musk’s relationship has deteriorated into a high-stakes feud, with Trump privately blaming Musk’s “crazy” behavior on drug use and considering selling his Tesla. The clash, sparked by Musk’s denunciation of Trump’s flagship domestic policy bill, escalated into public insults and threats over government contracts and political credit. Musk briefly threatened to halt a SpaceX spacecraft but later softened, signaling openness to peace. The dispute poses risks for both: SpaceX depends on federal contracts Trump has threatened, while Musk’s pledged $100 million in support for Trump-aligned groups is now uncertain. Allies are bracing for a prolonged split, though officials say Trump could still seek détente. The feud has also renewed scrutiny of ketamine amid reports about Musk’s past use; Musk denies current drug use. Tesla shares rebounded, and political figures, including Speaker Mike Johnson, urged reconciliation.
Entities: Donald Trump, Elon Musk, SpaceX, Tesla, ketamineTone: analyticalSentiment: negativeIntent: inform

Musk escalates public spat with Trump by making Epstein files claim | South China Morning Post

Elon Musk escalated a public feud with President Donald Trump by claiming on X that Trump appears in secret government “Epstein files,” offering no evidence. Musk, who recently left a White House advisory role, suggested this is why the documents haven’t been released. The Trump administration has said it’s reviewing tens of thousands of Epstein-related materials, a process touted by Trump’s MAGA supporters as potentially exposing powerful associates. Musk’s claim revives a conspiracy theory popular on the far right amid his deteriorating relationship with Trump.
Entities: Elon Musk, Donald Trump, Jeffrey Epstein, X (formerly Twitter), White HouseTone: analyticalSentiment: negativeIntent: inform

Trump not interested in talking to Elon Musk, may get rid of his Tesla | South China Morning Post

A White House official said President Donald Trump has no plans to speak with Elon Musk, signaling their feud over a major Republican tax-and-spending bill will continue. Trump told media he’s not focused on Musk and may dispose of the red Tesla Model S he bought in March after previously promoting Tesla at the White House. Musk has continued criticizing the legislation but did not address Trump directly.
Entities: Donald Trump, Elon Musk, White House, Tesla Model S, Republican tax-and-spending billTone: analyticalSentiment: negativeIntent: inform