Trump vs. Musk: Trump Denies Plot to Cripple Elon’s Empire

The rift between US President Donald Trump and Tesla CEO Elon Musk in 2025 evolved from a previously close alliance into a highly public and contentious feud marked by sharp criticisms, threats, and political maneuvering.

Initially, Musk was a prominent supporter and benefactor of Trump, investing heavily in his 2024 re-election campaign.

He also served as co-leader of the Department of Government Efficiency (DOGE), a White House office aiming to reduce government waste.

Their collaboration was characterized by public appearances, shared policy goals, and apparent mutual respect.

However, tensions began to crack in May 2025 when Musk publicly criticized Trump’s signature legislative initiative, the “One Big Beautiful Bill.”

The bill is a tax and spending package projected to significantly increase the federal deficit.

Musk called the bill a “disgusting abomination,” sparking surprise and frustration among Republican lawmakers aligned with Trump.

This bill threatened Musk’s interests because of its implications for government subsidies and contracts that Musk’s companies, including Tesla and SpaceX, relied upon.

The public dispute escalated dramatically in early June 2025.

Musk denounced the bill through social media and interviews, warning it would precipitate an economic downturn in the latter half of the year.

In response, Trump threatened to cut off billions of dollars’ worth of federal subsidies and contracts to Musk’s enterprises.

These include critical NASA contracts that support SpaceX’s Dragon spacecraft missions to the International Space Station.

Trump stated that removing these subsidies could save the government “billions and billions of dollars.”

This retaliatory move put Musk’s companies, integral players in both the private and government space sectors—at significant financial risk.

The conflict deepened with Musk making personal accusations in return.

Musk alleged Trump was involved in withholding files related to Jeffrey Epstein, which attracted widespread media attention and intensified the hostility between them.

Musk even supported calls for Trump’s impeachment and threatened the retirement of SpaceX’s Dragon spacecraft, actions that underscored the seriousness of the breakdown in their relationship.

Despite this acrimony, Trump later denied claims that he sought to destroy Musk’s companies.

He emphasized on his social media platform Truth Social that he wanted Musk and all American businesses to “THRIVE like never before,” stating that the prosperity of Musk’s enterprises was good for the USA[.

This public statement sought to clarify his position amid escalating tensions.

Yet, the threat to cut subsidies lingered as a negotiation lever in their dispute[original query].

Further complicating their rivalry, Musk in July 2025 announced the founding of the America Party.

This was a new political entity aimed at unseating Republican lawmakers who supported what Musk viewed as fiscally irresponsible policies, including those championed by Trump.

Musk pledged to allocate substantial resources to this political effort, signaling a sustained opposition to Trump-aligned Republicans.

The feud has had significant repercussions beyond their personal animosities.

Tesla’s market value plunged by approximately $138 billion, and Musk’s personal net worth declined by around $34 billion.

The dispute also raised concerns about potential disruptions to NASA missions and exposed fractures within the Republican Party, as Musk’s influence and Trump’s political base faced off.

In summary, the background of the rift centers on diverging views over fiscal policy, government subsidies, and political strategy.

Musk shifted from an influential ally within the Trump administration to a vocal critic of Trump’s economic policies, particularly the “One Big Beautiful Bill.”

Trump retaliated by threatening to withdraw government support essential to Musk’s business ventures.

Their conflict has evolved into a broader political battle with Musk launching a new political party to challenge Trump’s allies.

This, observers say reflects deep divisions in American politics and the intersection of business and government power in 2025.

This dispute serves as a prominent example of how even alliances between the most powerful individuals can deteriorate rapidly when financial interests and political ideology clash.

The conflict also highlights the vulnerabilities of companies like Tesla and SpaceX that, despite their technological prowess, depend heavily on federal support and contracts within a challenging and partisan political landscape.

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