The latest high-profile clash in American politics erupted this week when a single Elon Musk tweet sent shockwaves through Washington, Wall Street, and the Twittersphere. On Thursday, Musk took to his social media platform X, bluntly stating, “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.” This direct jab at former President Donald Trump came just minutes after Trump, during a press briefing in the Oval Office, expressed deep disappointment in his erstwhile ally.
The feud is rooted in Musk’s fierce opposition to Trump’s signature domestic policy bill, which he labeled a “disgusting abomination.” Musk, who had been a major financial backer and close advisor to Trump, now finds himself at odds with the president over the proposed elimination of electric vehicle subsidies—a move that would directly impact Tesla, which has benefited from these incentives for years. The tension between the two men, once described as political “first buddies,” has now reached a breaking point, with both sides exchanging personal barbs and accusations of ingratitude.
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The Tweet That Rocked Washington
Musk’s tweet was not just a passing comment—it was a calculated rebuke aimed at Trump’s leadership and policy decisions. Musk reminded the public of his pivotal role in the 2024 campaign, where he donated nearly $300 million to support Trump’s re-election, making him the largest Republican contributor of the cycle. His influence extended beyond campaign finance; Musk was also tapped to lead the Department of Government Efficiency, tasked with slashing federal bureaucracy and streamlining government operations.
Trump, speaking to reporters in the Oval Office alongside German Chancellor Friedrich Merz, did not mince words. “I’m very disappointed in Elon,” Trump said. “I’ve helped Elon a lot.” He went on to suggest that Musk’s opposition was driven by the bill’s proposal to end the $7,500 electric vehicle subsidy by the end of 2025. Trump even hinted that Musk might be suffering from “Trump derangement syndrome,” a term used by Trump and his allies to describe those they believe have an irrational hatred for him.
Musk’s response was swift and public. He shifted his focus from Republican members of Congress to Trump himself, accusing the president of ingratitude and questioning his leadership. “Such ingratitude,” Musk added in a follow-up post. The billionaire’s posts on X have become a focal point of national attention, as his words carry significant weight both politically and economically.
Tesla Stock Price Feels the Heat
The fallout from the Elon Musk tweet has not been confined to the political arena. Tesla’s stock price took a sharp hit on Thursday, plummeting over 5% in a single day—despite the absence of any major company-specific news. Investors and analysts quickly connected the dots, attributing the drop to Musk’s increasingly vocal stance against Trump and the uncertainty it introduces for Tesla’s future.
Musk’s political alignment has been a double-edged sword for Tesla. While his support for Trump initially boosted investor confidence and led to a surge in Tesla’s share price, his recent criticism of the administration has alienated some customers and rattled the market. Tesla’s sales have declined in key markets such as Europe, China, and California, even as overall electric vehicle sales continue to rise. The proposed elimination of EV subsidies threatens to further dampen demand for Tesla vehicles, adding to investor anxiety.
The stock’s volatility reflects the broader market’s sensitivity to Musk’s political moves. Since late May, Tesla shares have dropped by 12%, a trend that coincides with Musk’s decision to reduce his involvement in Washington and focus more on his business ventures. The “Tesla Takedown” protest movement has also gained momentum, contributing to the stock’s wild swings.
Trump vs. Musk: A Partnership Unraveled
The relationship between Trump and Musk, once a powerful alliance, now appears irreparably damaged. Musk’s role in the Department of Government Efficiency gave him unprecedented influence over federal workforce reductions, but his outspoken criticism of the president’s policies has cost him that privileged position. Trump, for his part, has publicly questioned whether their friendship can survive, saying, “Elon and I had a great relationship. I don’t know if we will anymore.”
Musk’s recent posts on X have not only targeted the president’s policy but also resurfaced old Trump tweets critical of Republican efforts to extend the debt ceiling, with Musk sarcastically approving of Trump’s past remarks. This escalation has turned a policy dispute into a full-blown public feud, with both men trading insults and undermining each other’s credibility.
The implications of this rift are far-reaching. Musk’s businesses, including SpaceX and Starlink, have also come under scrutiny due to his political ties. While these companies continue to dominate their respective industries, the uncertainty surrounding Musk’s relationship with the White House could complicate future government contracts and regulatory approvals.
The Road Ahead: What’s Next for Musk and Trump?
As the dust settles from the latest Elon Musk tweet, the question on everyone’s mind is whether this feud will have lasting consequences for both men and the industries they shape. Musk’s influence in politics and business is undeniable, but his willingness to challenge Trump so publicly could jeopardize his standing in Washington and his access to government contracts.
For Trump, the loss of a high-profile ally like Musk is a significant blow, especially as he seeks to advance his domestic agenda. The president’s signature bill, which Musk has so vocally opposed, remains a key priority for the administration. The ongoing battle between these two titans is likely to play out in the media, on social networks, and in the halls of Congress for weeks to come.
The saga serves as a reminder of how quickly political alliances can unravel and how powerful a single tweet can be in shaping public opinion and market sentiment. As both Musk and Trump navigate this new reality, the world will be watching closely to see who blinks first—and what it means for the future of American politics and business.
Stay tuned for more updates and share your thoughts on this unfolding drama.