A public falling-out between former allies Elon Musk and Donald Trump has erupted into a political and personal firestorm, with the SpaceX and Tesla chief executive announcing the decommissioning of the Dragon spacecraft after President Trump threatened to withdraw federal contracts linked to Musk’s ventures.
The dramatic turn in relations followed Musk’s criticism of Trump’s flagship legislative package, the so-called “One Big Beautiful Bill”, a sweeping tax and spending proposal. Musk, once a vocal supporter and informal adviser to Trump, denounced the measure for deepening America’s already ballooning $36.2 trillion national debt.
President Trump, speaking at a press conference alongside German Chancellor Friedrich Merz, expressed disappointment in Musk, suggesting their friendship had frayed over policy disagreements — notably the exclusion of electric vehicle (EV) incentives from the bill.
"I've helped Elon a lot," Trump remarked, adding that Musk may have taken umbrage over the dropped EV credit. He also questioned whether Musk ever truly opposed the measure, claiming the billionaire “knew the inner workings of the bill,” a charge Musk has denied.
Musk responded on social media platform X, calling the legislative process opaque. “False,” he wrote. “This bill was never shown to me and was passed in the dead of night before Congress could even read it.”
Escalating matters further, Trump took to Truth Social to suggest the federal government could cut off funding to Musk’s companies. “The easiest way to save billions in our budget is to terminate Elon’s governmental subsidies and contracts,” he posted.
Also read: Trump-Musk ‘bromance’ was meant to end but what’s next?
Within hours, Musk announced SpaceX would begin winding down its Dragon programme, a mainstay of US manned spaceflight since 2012. “In light of the President’s statement... SpaceX will begin decommissioning its Dragon spacecraft immediately,” Musk posted on X.
In an incendiary post, Musk also alleged that Trump was named in sealed files related to convicted sex offender Jeffrey Epstein, claiming this was “the real reason they have not been made public”.
Musk subsequently endorsed a user’s call for Trump’s impeachment, replying “Yes” to a post advocating for Senator JD Vance to replace the President.
The exchange signals a complete breakdown in what had been a mutually beneficial relationship. Musk later claimed Trump owed him politically, stating that without his backing, “Democrats would control the House and Republicans would only have a slim Senate majority.”
Trump, for his part, remained defiant, writing on Truth Social: “I don’t mind Elon turning against me, but...”
The impact was not limited to the political arena. Tesla shares fell 14 per cent on Thursday — the sharpest single-day drop in its history — wiping out over $150 billion (₹12.6 lakh crore) in market value.
The electric carmaker’s market capitalisation fell below the $1 trillion threshold, ending the session at $916 billion. The stock is now down 30 per cent for the year. Both the White House and Tesla have declined to comment on the escalating dispute.
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