On June 5, a media storm broke out when the two most powerful figures in the world, US President Donald Trump and technology billionaire Elon Musk, publicly “ignored” each other on social media platforms.

The relationship between President Trump and billionaire Musk has deteriorated in a short time (Photo: Reuters).

From close friends, even “political allies” with the ambition to “reform America”, “America First”, President Donald Trump and billionaire Musk quickly became opponents in a dramatic “war” of words, shaking the stock market and shocking world public opinion.

This argument is not only a story about personal conflicts between two eccentric people, but also reflects deeper issues in American politics, economics and society.

From “golden friendship” to disillusionment

Experts say that the relationship between President Donald Trump and billionaire Elon Musk began to attract international public attention from the 2024 election campaign.

On July 13, 2024, just seconds after the failed assassination attempt on Mr. Trump at a rally in Butler, Pennsylvania, billionaire Musk publicly supported Mr. Trump on X, writing: “I fully support President Trump and hope he recovers soon.”

This marks the beginning of an ambitious alliance. Elon Musk, with his enormous wealth and social media influence, has spent nearly $300 million to support the campaign of Mr. Trump and other Republican candidates. He has appeared regularly at President Trump’s side, from events at Mar-a-Lago to cabinet meetings at the White House, even giving Mr. Trump a tour of SpaceX’s control center before the launch of the Starship rocket in November 2024.

Elon Musk is not only a donor but also a “close advisor” to Mr. Trump. In his role as a special government employee, he heads a government reform project called the Office of Government Efficiency (DOGE), with the goal of cutting $2,000 billion in federal spending. Trump praised Musk as “one of the world’s greatest business leaders and innovators” during a White House press conference on May 30, when Musk left DOGE. The two seem to share a vision for a stronger America, with Trump relying on his political clout and Musk providing financial resources and new technological thinking.

Signs of a rift

However, many observers predicted from the start that the alliance would be difficult to sustain. Both Trump and Musk are known for their eccentric personalities, big egos and tendency to “take the stage.”

According to Reuters, some previous events have shown potential conflicts. During the 2016 election campaign, Musk said that Trump was “not the right person” to lead the United States and supported Hillary Clinton’s economic policies. Although Musk later joined the federal advisory council under Trump, he resigned just months after Trump withdrew the United States from the Paris Climate Agreement.

Policy disagreements, especially regarding green energy and subsidies for electric vehicles, have quietly crept into their relationship.

By May, when Elon Musk ended his role at DOGE, tensions began to become more apparent. Musk has publicly expressed frustration with the state of bureaucracy in Washington, saying it is “much worse than I thought it would be” and calling government reform an “uphill battle.” While President Trump has tried to maintain a positive image, declaring that Elon Musk is “not really leaving” and will remain a “friend and advisor,” their policy disagreements have pushed them to the brink.

What happened: The social media war

The conflict erupted on June 5 when Musk publicly criticized Trump’s “Tax and Spending Bill,” known as the “Super Bill.” The bill, one of Trump’s top priorities, includes $1.6 trillion in federal spending cuts and massive tax cuts, but the Congressional Budget Office (CBO) estimates it will increase the deficit by $2.4 trillion over the next decade. Elon Musk called the bill “abomination” and “a huge waste of money,” criticized it for being rushed through without reading it, and even threatened to fight any Republican lawmakers who supported it.

President Trump, at a White House event with German Chancellor Friedrich Merz, responded by expressing his “disappointment” with Elon Musk. He accused Musk of only opposing the bill because “it cuts subsidies for electric vehicles,” a move that would directly affect Tesla, Musk’s company.

“Elon knows more about this bill than most people,” Trump said. “He has no problem until we cut the subsidies for electric vehicles, which are worth billions of dollars.” He also withdrew the nomination of Jared Isaacman, a Musk ally, to head NASA; and threatened to cut billions of dollars in federal contracts with Musk’s companies, including SpaceX and Tesla.

Climax: Personal Accusations

According to experts, the debate quickly moved beyond policy into a “personal battle.” Musk, on X, denied knowing about the bill’s contents and called President Trump’s words “an obvious lie.” He claimed that Trump would not have won the 2024 election without his support. At its peak, Musk made a shocking allegation, writing on X: “Time to drop the big bomb: @realDonaldTrump is on Epstein’s file. That’s the real reason they haven’t been released. The truth will come out.”

Musk’s statement was unsupported by evidence, but it immediately ignited a wave of speculation and conspiracy theories that had been simmering in public opinion for years around the name Epstein, a person who was accused of running a network of sexually abusing minors for wealthy and powerful “clients.” Epstein was arrested in 2019 and later found dead in his jail cell, raising questions about whether he was “silenced.” Musk’s accusations mark a turning point as the conflict moves from policy to personal attacks.

President Trump responded to the attacks on Truth Social, calling Musk a “lunatic”; claiming that he had asked Musk to leave the administration before Musk criticized the Super Bill. He also mocked the “bruise” on Musk’s face (accidentally caused by Musk’s son), asking why Musk did not use makeup to cover it up.

The social media war sent shockwaves through the markets: Tesla shares fell 14%, wiping out $152 billion in market value, while Trump Media, Truth Social’s parent company, fell 8%.

Temporarily cool down

By the end of June 5, Elon Musk seemed to have cooled down the tension when he responded to a user on X network, agreeing that both should “calm down” and withdraw the intention to stop SpaceX’s Dragon spacecraft.

However, Mr. Trump continued to criticize Musk internally, even considering selling his Tesla. By June 6, both temporarily stopped attacking each other publicly, but there was no sign of reconciliation. A White House official said that Trump had no intention of talking to Musk at this time.

The root cause: More than personal conflict

First, economic conflict of interest. One of the main causes of the above incident is economic conflict of interest. Musk’s companies, especially Tesla and SpaceX, are heavily dependent on federal contracts and subsidies.

According to the Washington Post, Mr. Musk’s companies have received at least $38 billion in government support over the past two decades. Trump’s bill, which would eliminate the $7,500 tax credit for electric vehicle buyers and subsidies for charging stations, would directly threaten Tesla’s bottom line. Likewise, the threat to cut SpaceX’s contract could be devastating, especially since the company is the only one that can ferry American astronauts to the International Space Station.

Elon Musk, however, is not just opposing it for personal gain. He argues that Trump’s $2.4 trillion deficit bill is “unsustainable” and goes against DOGE’s stated goal of cutting spending. This suggests that Musk, despite his own interests, is concerned about the long-term economic impact of Trump’s policies.

Second, the big egos and different visions. Both Mr. Trump and Elon Musk are known for their “big egos” and assertive leadership styles. Donald Trump, as president, wants to consolidate power and pass policies that bear his personal stamp. Elon Musk, as an advisor and donor, wants to shape policies according to his technological vision, such as promoting green energy and reducing government spending. When Mr. Trump fails to meet Musk’s expectations, especially with the Bill that Musk considers “wasteful,” conflict becomes inevitable.

Moreover, Elon Musk has a history of escaping scandals thanks to his sharp instincts and ability to navigate public opinion. His public criticism of President Donald Trump, even proposing the creation of a new political party representing “80% of independents,” shows that he is willing to confront to protect his image and interests.

Third, the context of systemic crisis. The spat is not just a personal story, but also reflects a larger systemic crisis in the US. The US economy is facing a recession, with real GDP falling 0.3% in the first quarter of 2025; consumer confidence is at a 12-year low. Mr. Trump’s tariff policies, especially with China, Canada and Mexico, are predicted to cause the biggest “trade shock” ever, pushing up inflation and hurting export-dependent states. The federal debt has reached $36 trillion, with the 2025 budget deficit forecast to reach $839 billion, putting enormous pressure on the Trump administration.

In addition, political instability is increasing, with protests over cuts to the health care program for veterans, international tensions related to Ukraine, the Middle East and East Asia. The Trump-Musk war of words, therefore, is not just a personal quarrel, but also a manifestation of deep tensions in American society and politics.

Consequences

Economically, the personal conflict has had an immediate impact on the market. Tesla shares fell 14% on June 5, Musk lost $20 billion in personal assets. Trump Media was also affected, with shares falling 8%. However, by June 6, Tesla shares recovered slightly, up 3.7%, showing that the market is trying to stabilize. However, if Mr. Trump carries out his threat to terminate the contract with SpaceX, the consequences could be more serious, affecting the US space program and national security.

Politically, the war of words between Mr. Trump and Mr. Musk seems to be weakening the Republican coalition. Elon Musk, as the party’s “biggest donor,” could withdraw his $100 million pledge for the 2026 midterm elections. In particular, his proposal to form a new party could divide conservative voters, especially young men and techies who have been drawn to Musk.

Meanwhile, Mr. Trump is facing pressure from allies in Congress, with some senators such as John Kennedy and Markwayne Mullin refusing to take sides in the dispute.

International observers say the dispute is a warning about the fragility of political alliances based on personal interests. It also shows the challenges Mr. Trump will face in implementing his reform commitments.

Although Mr. Trump and Elon Musk once shared the goal of “making America great again,” differences in vision and interests have prevented them from “going together.” Moreover, the incident highlights America’s dependence on individuals like Musk, with companies like SpaceX playing an indispensable role in national security and space.

The Trump-Musk spat was a symbolic event, reflecting not only the personal conflict between two powerful men, but also systemic problems in American politics and economics. Once an ambitious alliance, the relationship seems to have collapsed due to conflicts of interest, oversized egos, and a larger crisis. While the social media war has “temporarily calmed down,” its consequences will be far-reaching, from the stock market to American politics.