A once-glowing alliance between U.S. President Donald Trump and billionaire Elon Musk has dramatically imploded, with Trump publicly declaring that Musk has “lost his mind.” The rift marks a stark shift from their previous camaraderie and presents significant political and economic implications.
Speaking aboard Air Force One en route to his New Jersey golf club on Friday, Trump tried to downplay the feud, saying, “I’m not thinking about Elon Musk, I just wish him well.” However, he couldn’t resist another jab, telling ABC in a separate interview, “You mean the man who has lost his mind?”
The split was catalyzed by Musk’s harsh criticism of Trump’s proposed mega-spending bill, which he called an “abomination.” The bill, which aims to fund large-scale infrastructure and defense projects, has drawn fire for potentially ballooning the national deficit and slashing healthcare funding for low-income Americans.
Trump responded with an Oval Office tirade on Thursday, expressing deep disappointment with Musk. The situation escalated when Musk accused Trump without evidence of being connected to disgraced financier Jeffrey Epstein, triggering a flurry of threats from Trump’s administration, including the potential cancellation of SpaceX contracts.
Despite the heated exchange, both sides have taken steps to cool the rhetoric. Musk backed away from threats to halt Dragon spacecraft missions critical to NASA, and Trump struck a less confrontational tone, saying any contract review would be done fairly.
Meanwhile, Tesla saw a massive market shake-up, losing over $100 billion in value on Thursday before partially recovering. Trump is also reportedly considering giving away the red Tesla S he bought during the height of their alliance, which is still parked on White House grounds.
Though Trump may hold leverage through government contracts, Musk’s massive financial backing including a reported $300 million donation to Trump’s 2024 campaign could pose future political risks. With the 2026 midterms on the horizon, Musk’s next moves could significantly shift dynamics within the Republican base.
What was once a high-profile political-tech partnership now appears to be a cautionary tale of alliances turned adversarial.
