The once-unbreakable alliance between President Donald Trump and tech billionaire Elon Musk has spectacularly imploded, as the U.S. president accused the Tesla CEO of “losing his mind” during a barrage of media appearances on Friday morning.
The fallout comes after Musk launched a fierce social media offensive on Thursday, suggesting Trump was implicated in the Jeffrey Epstein files — documents related to the convicted sex offender. Trump swiftly countered with a statement posted on Truth Social, quoting Epstein’s former defense attorney David Schoen, who denied Musk’s insinuation.
“I can say authoritatively, unequivocally and definitively that [Epstein] had no information to hurt President Trump. I specifically asked him!” Schoen’s statement read.
Once close political allies — with Musk spending nearly $300 million to support Trump’s 2024 presidential campaign — the two now appear locked in an explosive and very public feud. When asked by ABC News about a possible reconciliation phone call with Musk, Trump replied, “You mean the man who has lost his mind?” and added that he was “not particularly” interested in talking to the tech mogul.
Speaking to CNN, Trump doubled down, stating, “I’m not even thinking about Elon. He’s got a problem. The poor guy’s got a problem.” Meanwhile, Trump privately claimed to associates, according to The New York Times, that Musk’s behavior was due to drug use.
The president’s team has tried to downplay the schism. Susie Wiles, Trump’s White House chief of staff, told NBC News there were “no plans” for a call between the two men.
Political and Economic Shockwaves
The rift is reverberating across the political and economic landscape. Musk, owner of X (formerly Twitter), has floated the idea of starting a new political party representing “the 80% in the middle,” signaling a potential disruption to the two-party status quo ahead of next year’s midterm elections.
On the economic front, Musk’s fortune took a direct hit, with his net worth dropping by $33 billion on Thursday alone, following a 14.2% plunge in Tesla shares — wiping out around $152 billion from Tesla’s market cap. While shares rebounded 6% on Friday, the volatility underscored the stakes of the high-profile quarrel.
The feud also spilled into the national security and space sectors. Musk had briefly threatened to decommission the Dragon spacecraft used by NASA, only to later reverse the statement. Still, the warning highlighted SpaceX’s outsized role in U.S. space efforts, including its Starlink platform, vital to Ukraine’s defense against Russia.
In retaliation, Trump reportedly threatened to cancel SpaceX’s U.S. government contracts, and Trump ally Steve Bannon went so far as to suggest Musk “should be deported from the country immediately.”
Musk has not yet responded to that call, but he did offer a tepid olive branch, replying to hedge fund billionaire Bill Ackman, who urged both men to reconcile “for the benefit of our great country.”
Fallout from the “Big, Beautiful Bill”
The tensions began after Musk criticized Trump’s signature tax and spending package, dubbed the “big, beautiful bill,” which experts warn could add $2.4 trillion to the national debt and strip 10 million people of their health coverage. Musk called it reckless and predicted it would trigger a recession.
Trump expressed “great disappointment” at Musk’s comments, igniting a spiral of recriminations, conspiracy allegations, and now a full-scale political divorce.
Meanwhile, Trump appeared to signal his own symbolic break from Musk’s empire, with the White House confirming on Friday that the president plans to sell his Tesla Model S.
