The political-business alliance between President Donald Trump and tech mogul Elon Musk has taken a sharp and very public turn, erupting into a high-profile feud that’s sending shockwaves through Washington and Wall Street alike. At the center of the controversy is Trump’s flagship economic proposal—dubbed the “One Big Beautiful Bill”—and Musk’s fierce opposition to it.
Earlier this week, Musk publicly slammed the bill on his platform X (formerly Twitter), calling it “a fiscal disaster” that could derail America’s clean energy future. The Tesla and SpaceX CEO specifically pointed to proposed cuts to electric vehicle tax incentives, warning that the legislation could cripple the EV sector and make Tesla vehicles significantly less affordable for American consumers.
In response, Trump fired back in vintage style. The president dismissed Musk’s criticism, telling reporters that the billionaire has “totally lost it” and suggesting he no longer sees Musk as a serious partner on economic or technological issues. The comment was quickly picked up across major networks, escalating tensions between the two powerhouses.
Adding symbolism to the split, Trump announced plans to get rid of the red Tesla Model S he famously purchased in March as a nod to American innovation. The car, which had been used by White House staff, is reportedly being sold off or removed from the presidential fleet—an unmistakable signal that the Trump-Musk alliance has officially fractured.
Beyond the personal drama, this rift could carry major economic consequences. Analysts warn that Musk’s companies, which rely on numerous federal contracts for space exploration, green energy, and infrastructure projects, could now face increased scrutiny. Insiders report that the White House is reviewing Tesla and SpaceX’s government agreements, raising concerns about the future of their collaboration with the federal government.
Despite the hostility, there may be a sliver of hope for reconciliation. Musk responded positively to a suggestion from billionaire investor Bill Ackman, who called for a truce between the two influential figures. “Always open to dialogue,” Musk replied, in a post many interpret as an olive branch. Trump, however, seems unmoved, telling ABC News that he’s “not particularly interested” in any further talks with Musk at the moment.
This dramatic fallout highlights the volatile intersection of business and politics in modern America. With both men commanding immense influence—one in the political arena and the other in tech and energy—their feud could reshape the landscape for electric vehicles, federal policy, and investor confidence moving forward.
As the story develops, industry leaders and political observers alike are watching closely to see whether this split is temporary—or the beginning of a lasting “Tesla divorce.”
