When Donald Trump began his second term in the White House, there was one billionaire who had his back like no other – Elon Musk. The two were more than allies; they were almost inseparable, a powerful duo that seemed to hold the world in their grip. But as the old saying goes, sometimes best buddies make the worst enemies. And that appears to be exactly what is unfolding between Trump and Musk.

What started as a seemingly minor disagreement has now snowballed into a full-blown feud, and not just any feud but one that is playing out in public, getting nastier by the hour, and could potentially cost millions, if not more.

The fallout reportedly began with Trump’s controversial tax-and-spending bill, a bill Musk openly slammed, claiming it would balloon the already massive $36.2 trillion national debt. While Trump initially kept quiet, Musk launched a vocal campaign to kill the bill. Things escalated quickly from there.

In a matter of days, the bromance gave way to barbs. Trump lashed out from his Truth Social account, threatening to terminate all government contracts with Musk’s companies.

Musk, never one to back down, responded on X with a Clint Eastwood-style “Go ahead, make my day,” and upped the ante by announcing SpaceX would begin decommissioning its Dragon spacecraft – the very one critical to NASA missions and the only U.S. vehicle currently capable of ferrying astronauts to the International Space Station.

By then, the gloves were off.

Trump publicly called Musk “CRAZY” and claimed that canceling his contracts was the most effective way to save “Billions and Billions” in the national budget. Musk didn’t hold back either, accusing Trump of being ungrateful and reminding everyone that he poured nearly $300 million into backing Trump and other Republicans during the election. “Without me, Trump would have lost,” Musk declared, adding that his support helped tip the Senate balance and keep the House close.

Musk’s posts grew more pointed. He warned that Trump’s tariff-driven economic strategy could push the U.S. into recession, and at one point even suggested that Trump should be impeached and replaced by Vice President JD Vance. Things got darker when Musk alleged that the Trump administration was withholding records related to Jeffrey Epstein – implying the president might be listed in those files. Trump has denied any connection, and Musk, notably, offered no evidence.

As the feud raged on, Tesla’s stock, already under pressure, nosedived further. Meanwhile, SpaceX – which has raked in over $20 billion in federal contracts since 2008 and is slated to be a key player in Trump’s proposed “Golden Dome” missile defense initiative, suddenly found itself in the political crosshairs.

Joining In…

Trump’s loyalists quickly rallied. Former advisor Steve Bannon didn’t hold back, referencing a report about Musk’s alleged ketamine use and calling for immediate investigations into Musk’s immigration status, drug history, ties to China, and even accusations that he tried to arrange a Pentagon-level briefing for President Xi.

Amid the noise, there were a few attempts to dial things down. Musk did walk back his threat to shut down the Dragon spacecraft after a follower on X advised him to “cool off.” He even agreed with hedge fund manager Bill Ackman’s suggestion that both men should make peace. But the damage seemed done.

Same Traits…

The feud was not entirely unexpected. Trump and Musk are both political pugilists with sizable egos and a penchant for using social media to punch back against their perceived enemies, and many observers had predicted an eventual falling out.

Even before Musk’s departure from the administration (DOGE) last week, his influence had waned following a series of clashes with cabinet members over his cuts to their agencies.

For Trump, the fight was the first major rift he has had with a top adviser since taking office for a second time, after his first term was marked by numerous blow-ups.

Trump parted ways with multiple chiefs of staff, national security advisers and political strategists during his 2017-2021 White House tenure. A few, like Steve Bannon, remained in his good graces, while many others, like U.N. Ambassador John Bolton, became loud and vocal critics.

After serving as the biggest Republican donor in the 2024 campaign season, Musk became one of Trump’s most visible advisers as head of the Department of Government Efficiency, which mounted a sweeping and controversial effort to downsize the federal workforce and slash spending.

Musk was frequently present at the White House and made multiple appearances on Capitol Hill, sometimes carrying his young son.

Only six days before Thursday’s blowup, Trump and Musk held an appearance in the Oval Office where Trump praised Musk’s government service and both men promised to continue working together.

Now, a prolonged feud between Trump and Musk could make it more difficult for Republicans to keep control of Congress in next year’s midterm elections. In addition to his campaign spending, Musk has a huge online following and helped connect Trump to parts of Silicon Valley and wealthy donors.

Musk had already said he planned to curtail his political spending in the future.
Soon after Trump’s Oval Office comments on Thursday, Musk polled his 220 million followers on X: “Is it time to create a new political party in America that actually represents the 80% in the middle?”

‘KILL THE BILL’
Musk targeted what Trump has named his “big, beautiful bill” this week, calling it a “disgusting abomination” that would deepen the federal deficit. His attacks amplified a rift within the Republican Party that could threaten the bill’s prospects in the Senate.

Nonpartisan analysts say Trump’s bill could add $2.4 trillion to $5 trillion to the nation’s $36.2 trillion in debt.

Trump asserted that Musk’s true objection was the bill’s elimination of consumer tax credits for electric vehicles. The president also suggested that Musk was upset because he missed working for the White House.

“He’s not the first,” Trump said on Thursday. “People leave my administration… then at some point they miss it so badly, and some of them embrace it and some of them actually become hostile.”

Musk wrote on X, “KILL the BILL,” adding he was fine with Trump’s planned cuts to EV credits as long as Republicans rid the bill of “mountain of disgusting pork” or wasteful spending. He also pulled up past quotes from Trump decrying the level of federal spending, adding, “Where is this guy today?”

Musk came into government with brash plans to cut $2 trillion from the federal budget. He left last week having cut only about half of 1% of total spending while causing disruption across multiple agencies.

Musk’s increasing focus on politics provoked widespread protests at Tesla sites in the U.S. and Europe, driving down sales while investors fretted that Musk’s attention was too divided.

Trump–Musk Spat,  Is a Regulatory Avalanche Coming for Musk’s Empire?

Now that the Trump–Musk bromance has spectacularly gone bust, there’s more than just political fallout to worry about.

The breakup might come with very real consequences for Elon Musk’s sprawling business empire and not just in the markets, with ties to Trump severed, there’s now a legitimate concern that Musk’s companies could face intensified regulatory scrutiny across sectors – from space and satellites to EVs, brain tech, and even social media.

Here’s a quick look at the U.S. regulatory bodies now holding the cards:

—Federal Communications Commission (FCC)
SpaceX’s ambitious plans to expand Starlink – its satellite-based internet service –  depend heavily on access to new spectrum. But in April, the FCC opened a review of spectrum sharing policies, aiming to modernize outdated rules that limit how much power Starlink and others can use. Translation – any policy shift here could either turbocharge or throttle Musk’s satellite dreams.

—Food and Drug Administration (FDA)
Neuralink’s sci-fi-like brain implant tech is under the FDA’s microscope. After initially rejecting Neuralink’s bid to start human trials citing safety concerns, the agency later approved them and those trials are now underway. But it’s far from smooth sailing. The FDA still holds the key to whether Neuralink ever makes it to market, in the U.S. or abroad.

—Environmental Protection Agency (EPA)
SpaceX’s sprawling launch site in Texas is on the EPA’s radar, particularly around wastewater management. Environmental reviews are ongoing under the National Environmental Policy Act, with agencies like the Fish and Wildlife Service also involved. Rocket launches might look cool, but they’re no free pass when it comes to land and wildlife impact.

—National Highway Traffic Safety Administration (NHTSA)
Tesla’s long-touted “Full Self-Driving” system is under ongoing scrutiny. NHTSA recently zeroed in on Musk’s plans to launch a paid robotaxi service in Austin, Texas, this June. The agency wants to know: Can these vehicles handle low-visibility conditions? How safe are they? Expect more probing questions as Musk pushes the envelope with autonomous driving.

—Federal Aviation Administration (FAA)
Last September, the FAA slapped SpaceX with a proposed $633,000 fine for violating license conditions before two rocket launches. The investigation is still open, and any future SpaceX mishap, especially given its occasionally explosive launch history could bring tighter restrictions or more delays.

—Securities and Exchange Commission (SEC)
Musk’s messy Twitter takeover in 2022 continues to haunt him. The SEC is still in the thick of litigation tied to that deal, and Musk is due to respond to new allegations soon. On top of that, the regulator is said to have opened an investigation into Neuralink, as revealed in a December letter Musk himself posted on X.

—Federal Trade Commission (FTC)
The FTC has been sniffing around X (formerly Twitter), eyeing whether the platform adequately protects user data, especially kids’ privacy. It’s also pursuing an antitrust probe into what Musk says is a coordinated effort by media watchdog groups to push advertisers away from his site. Musk has accused these groups of trying to “cancel” X with an illegal boycott.

Hence, without Trump’s political shield, Musk may now find himself squarely in the regulators’ crosshairs. From space to safety, satellites to social media, his empire spans multiple sensitive sectors and Washington has plenty of tools to make life difficult.

The Last Bit

This is more than a messy spat between two massive egos; with billions in federal funding, defense contracts, and major policy stakes involved, the Trump–Musk meltdown could have real and lasting consequences – for business, government, and much more.