Topline
President Donald Trump and Elon Musk’s months-long alliance imploded in spectacular fashion Thursday as the world’s richest man and its most powerful engaged in a nasty, public back-and-forth on their respective social media platforms—just months after the two formed a friendship so close Musk sometimes slept at the White House.
President Donald Trump speaks during a news conference with Elon Musk in the Oval Office of the … More
Timeline
Musk, who previously disagreed with Trump’s controversial tariff policies but had remained mostly reserved in his criticism of them in recent months, said the tariffs will trigger a recession in the second half of the year.
Musk endorsed one user’s suggestion that Trump be impeached, writing “Yes” in response to an X user who wrote “President vs. Elon. Who wins? My money’s on Elon. . . Trump should be impeached and JD Vance should replace him.”
Musk said he would decommission SpaceX’s Dragon spacecraft used by NASA to transport astronauts to the International Space Station.
Musk alleged on X, without evidence, the reason the White House has yet to fully release the “Epstein files” detailing the FBI’s investigation into the late, disgraced former financier Jeffrey Epstein is because Trump is implicated in them.
Musk said it’s “such an obvious lie” and “so sad” in response to Trump claiming he asked him to leave the White House because he was “wearing thin,” then “took away his EV Mandate,” causing the Tesla CEO to go “CRAZY!”—referring to a provision in Trump’s policy bill that would phase out the EV tax credit by 2026.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote, adding, “I was always surprised that Biden didn’t do it!”
Musk said “without me,” Trump would have lost the election, Democrats would control the House, and Republicans would have a more narrow majority in the Senate, after Musk donated more than $250 million toward Trump’s campaign, accusing Trump in a subsequent tweet of “such ingratitude.”
Musk accused Trump of lying saying he didn’t turn on the bill after the EV tax credit was removed: “False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!” Musk tweeted.
Trump, making his first comments on Musk’s criticism of his bill during an Oval Office press conference, insinuated the Tesla CEO opposes his “One Big Beautiful Bill Act,” which Musk has been ranting about all week, because he is “upset” the electric vehicle incentive was removed, adding he’s not sure he’ll remain friends with Musk and alleging Musk “knew the inner workings of the bill.”
Trump also suggested Musk is suffering from what he refers to as “Trump derangement syndrome,” which Trump describes as people turning on the president after they leave his administration.
Musk, in his most direct attack on Trump amid his days-long rant against the policy bill, reposted a 2013 tweet from Trump that said he was in disbelief and “embarrassed” Republicans were extending the debt ceiling, captioning the repost “wise words,” after Trump said Wednesday the debt limit should be “entirely scrapped” as a provision of the bill, which would raise the debt ceiling ahead of its expected expiration date in August.
Surprising Fact
Musk said repeatedly last year he supports eliminating the EV tax credit—statements that hurt Trump’s argument he only opposes the bill because it gets rid of the incentive. “I think we should get rid of all credits,” Musk said in December when asked by a reporter on Capitol Hill if he supports getting rid of the electric vehicle tax credit, Politico reported. The House-passed version of the bill would phase out the $7,500 tax credit for some EV buyers by 2026.
Big Number
$2.4 trillion. That’s how much the bill would add to the federal debt over the next decade, according to an estimate by the nonpartisan Congressional Budget Office released Wednesday that estimates it would cost $4.2 trillion, mostly from tax cuts, and save $1.8 trillion.
Crucial Quote
“I’m very disappointed in Elon. I’ve helped Elon a lot,” Trump said while sitting next to German Chancellor Friedrich Merz in the Oval Office on Thursday.
Key Background
Musk—who left his White House role Friday—has fired off dozens of tweets this week attacking Trump’s policy bill over the amount it’s expected to add to the federal debt. “I’m sorry, but I just can’t stand it anymore,” Musk wrote Tuesday on X in his initial post bashing the legislation, calling it a “massive, outrageous, pork-filled . . . disgusting abomination.” Musk attacked Trump directly over the bill for the first time since he began his days-long rant moments before Trump sat down with Merz by reposting the president’s 2013 tweet about the debt ceiling. In other tweets this week targeting the “One Big Beautiful Bill,” Musk threatened Republicans who voted for it, warning that “in November next year, we fire all politicians who betrayed the American people” and calling for lawmakers to “KILL The BILL.” Until Trump’s comments Thursday, House Speaker Mike Johnson, R-La.—who shepherded the bill through the House—was the top Republican defending the legislation against Musk’s criticism. Johnson said Wednesday Trump is “not delighted that Elon did a 180.”
What To Watch For
The bill, passed by the House in a party-line vote last month after last-minute revisions to appease Republican holdouts, is being negotiated by the Senate. Republican leaders have set a July 4 deadline to put the bill on Trump’s desk for signage, but GOP resistance in the upper chamber—and some expressions of regret from a few House Republicans who said they were unaware of certain provisions—threaten to delay its passage. The legislation would fulfill Trump’s key campaign promises, including an extension of his 2017 tax cuts, no taxes on tips and overtime and additional border security, paid for, in part, by cuts to Medicaid.
Tesla And Trump Stock Battered, Crypto Prices Drop
Tesla shares dropped 14% as Musk clashed with Trump, closing at $284.70 and completely erasing a month’s worth of gains it made in May. The fall marked the 11th-worst single trading day for the electric vehicle maker since it went public in 2010, according to FactSet. Musk, who owns about 12% of Tesla excluding options, saw his estimated net worth tumble by $27 billion to $388 billion (he still remains the world’s wealthiest person by far). Trump Media & Technology Group’s stock closed down 8% at $20.12, bringing shares to their lowest point since April 16. Multiple cryptocurrencies also slumped amid the spat, with ethereum falling 7%, Solana dropping 6% and the Musk-backed dogecoin sliding 9%. Bitcoin prices did not fall as sharply as its competitors’ prices, but still sunk by 3% by Thursday evening.
Tangent
Tensions between Musk and Trump were palpable during the joint press conference they held Friday to mark Musk’s last day leading the Department of Government Efficiency. While the two praised each other, their once-lighthearted rapport appeared stiff and uneasy. Musk in particular appeared to be in an odd mood, prompting social media users to claim he was “tweaking out,” suggesting he may have been under the influence of drugs, as the press conference was held hours after a New York Times report alleging Musk engaged in heavy drug use while he campaigned for Trump last year. Musk also sported a black eye during the press conference, which the Tesla CEO claimed he got from his five-year-old son.
Further Reading
‘KILL The BILL’: Musk Deepens Rant Against Trump’s Signature Policy Legislation (Forbes)
Musk Calls For Ending Electric Vehicle Tax Credit—Which Could Help Tesla (Forbes)
Musk Cuts Off Reporter Asking About Drug Use Allegations—Including Ketamine, Ecstasy And Adderall (Forbes)
