Trump–Musk Alliance Crashes as Feud Over Spending Bill Turns Ugly, Stocks and Subsidies at Stake

The once-unlikely alliance between US President Donald Trump and tech mogul Elon Musk has unraveled in spectacular fashion, with both figures trading public barbs over Trump’s newly passed tax and spending bill. The clash began when Musk, who recently resigned from his post as head of the Department of Government Efficiency (Doge), lambasted the legislation on his platform X, calling it a “disgusting abomination” that irresponsibly bloats the national debt. Trump, in turn, responded with frustration, stating he was “disappointed” with Musk’s disloyalty and hinted at the termination of government contracts and subsidies to Musk’s companies, including SpaceX and Tesla. Musk retaliated, accusing Trump of “ingratitude” and dramatically threatened to shut down his Dragon spacecraft program—though he later walked back the statement.

The feud intensified throughout Thursday, with both leaders airing grievances in real time across their respective social media platforms, turning what had been backroom political friction into a front-page spectacle. Musk claimed credit for Trump’s 2024 election win, asserting that without his endorsement and $290 million support, the Republicans would have failed. He posted a flurry of accusations, including calls for Trump to resign and unverified hints at Trump’s name appearing in sealed files related to Jeffrey Epstein. Meanwhile, Trump labeled Musk “crazy” and claimed cutting off Musk’s subsidies was the simplest way to save “billions and billions” in the national budget. The White House condemned Musk’s comments, while press secretary Karoline Leavitt dismissed his grievances as stemming from the loss of EV-related incentives in the bill.

Beyond the mudslinging, the fallout from the feud has already begun to ripple through financial and political sectors. Tesla’s stock plunged 14% within hours of the spat going public, and analysts warn that Musk’s combative stance may complicate the bill’s journey through the Senate. At the heart of the dispute lies Musk’s concern over increased government debt and targeted removal of green energy subsidies, which he argues were slashed unfairly while fossil fuel incentives remain intact. Trump, however, defended the bill during a press conference with German Chancellor Friedrich Merz, stating Musk had full knowledge of the bill’s design and only objected after his personal interests were threatened. With tensions escalating and the 2025 political climate heating up, the breakdown of this once-powerful partnership may signal broader fractures within the conservative bloc.

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