Why Elon Musk Fell Out with Donald Trump

Elon Musk and Donald Trump had a very public falling-out during the night of June 5th to 6th. In this column, we break down what really caused the rift between the entrepreneur and the sitting U.S. President.

Few had seriously considered the possibility of a dramatic fallout between the two. Back in November, Musk was appointed co-head of the Department of Government Efficiency (DOGE), a new role meant to introduce a more “entrepreneurial” approach to federal operations.

Trump justified the appointment by praising Musk’s ability to offer “useful advice and insights,” claiming that with his input, the department could finally deliver on long-standing Republican goals. For a while, the alliance seemed solid — strong enough that, by February, Musk publicly declared:

I love Donald Trump as much as a straight man can love another man.

Musk’s appointment didn’t exactly come out of the blue. During the campaign period, the entrepreneur had been one of Trump’s most vocal supporters. Media outlets often described the relationship as one of mutual benefit.

Expanding Trump’s voter base through Musk’s fan following — in addition to over $100 million in campaign donations — clearly needed a return on investment. That could mean, for example, easing regulatory pressure on Musk’s companies. Both Trump’s first term and Biden’s presidency saw a fair share of unfriendly actions toward Musk.

Take Tesla, for instance. Both presidents had, at various points, undermined its position in the EV market. Yet Musk continued to benefit from generous government support — like billions in public contracts for launches, satellites, and communications. Tesla also made hundreds of millions from selling regulatory credits to automakers that failed emissions standards.

But Musk clearly wanted more. He wanted the pressure off his companies, the end of dozens of federal probes, more access to juicy contracts, and expanded subsidies — all to ensure his empire remained unshakably powerful. In return, he promised to help Trump cut $2 trillion from the federal budget.

Musk’s departure from the Department of Government Efficiency was discussed as actively as his appointment. At the time, it didn’t seem like a scandal — he left DOGE quietly, and the special contract only implied a 130-day tenure anyway.

Still, media and analysts couldn’t find a positive spin. They pointed to what appeared to be a deeper struggle — a collision of interests where both men's careers were on the line.

One, as President, risks legal fallout from past clashes, struggles to deliver on loud reforms, and faces growing scrutiny over unfulfilled promises on Ukraine. The other risks not only losing political clout but also government contracts — a loss that could destabilize his entire business empire.

Things escalated once the internet caught wind of sharp public statements from both camps. But it actually started offline, when Trump — during a meeting with German Chancellor Friedrich Merz — responded to Musk’s criticism of a key budget bill:

I'd rather have him criticize me than the bill. Because the bill is incredible.

The bill in question reshapes government spending and tax policies. Economists warn it could significantly increase the federal deficit — by hundreds of billions — if not revised.

Musk wasn’t impressed with the “One Big Beautiful Bill”: he warned it could raise the deficit by up to $2.5 trillion, and went on to call the bill a “disgusting abomination,” criticizing everyone who voted for it.

"I’m sorry, but I just can’t stand it anymore."

Axios reported that Musk had reason to be upset. Tesla could be negatively affected if the bill cuts EV tax credits. In fact, the company has already spent $240,000 on lobbying to preserve them — a legal and transparent process in the U.S.

But Musk’s grievances may go beyond the bill. Around the same time, the FAA rejected a proposal to use Starlink systems to monitor civilian air traffic — another blow to Musk’s sprawling interests.

At the meeting with Chancellor Merz, Trump hinted that his relationship with Musk was deteriorating — once strong, but now uncertain. And sure enough, things quickly soured. In response to public criticism, Musk launched an online offensive:

Without me, Trump would have lost the election.

Thus began a digital brawl: Musk posted jabs on X (formerly Twitter), while Trump fired back on Truth Social. Trump’s retort was equally pointed:

"The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts."

Musk replied that it was “time to drop the really big bomb,” hinting that Trump’s name appears in the “Epstein files” and implying that’s why they haven’t been released. Trump had previously promised to declassify them ahead of last year’s election.

The public had been told these files would reveal photos, videos, personal items, and sex toys — evidence of the late financier Jeffrey Epstein’s crimes. The first batch came out in February, but most of it was already public knowledge.

Trump responded to Musk’s threat by saying he was burnt out and knew he was going to be fired — adding that the entrepreneur had simply "lost his mind." Musk, meanwhile, made headlines again: he vowed to decommission the Dragon spacecraft, then backtracked, but not before calling for Trump’s impeachment.

Musk suggested that Vice President J.D. Vance might make a better president, adding that Trump’s trade policies could damage the economy:

The Trump tariffs will cause a recession in the second half of this year.

The consequences were swift. Within 24 hours, Musk’s net worth dropped by $34 billion. Tesla alone lost $150 billion in market value. And analysts warn this may be only the beginning. There are fears Musk could lose key contracts and subsidies — even face pressure on SpaceX, potentially forcing NASA to start buying seats from Russia’s Soyuz programme again.

Some politicians have already turned on Musk. Trump’s former adviser Steve Bannon even called for his deportation, labelling him an “illegal immigrant” and citing alleged drug use — demanding a full investigation.

Polish Foreign Minister Radosław Sikorski, whom Musk once mocked as a “small man” over disagreements on Starlink’s role in Ukraine, issued a sharp response:

See, big man, politics is harder than you thought.

All of this points to the possibility that Musk could be facing an old-fashioned American-style “cancellation” — public backlash over past statements and controversies. Musk appears ready for that too, saying he’s prepared to “blow up” the Republican Party if needed.

The New York Times reports Trump may strip Musk of security clearance, which would limit his government collaboration. According to the paper, Musk may retaliate by funding campaigns that turn public opinion against the GOP.

The White House is reportedly trying to schedule a phone call to deescalate the feud. But Trump says he’s not interested — claiming Musk has “lost his mind.”