Elon Musk vs. Trump: Tesla Loses $150 Billion as Fight Turns Public

Elon Musk and U.S. President Donald Trump are no longer allies. What started as a policy disagreement has now become a major public fight—and it’s already causing serious damage.

Trump Threatens to Cut Government Deals

On Thursday, Trump said he will cancel all government contracts and subsidies given to Musk’s companies like Tesla, SpaceX, and Starlink. This came after Musk strongly criticized Trump’s $4 trillion spending bill, calling it wasteful and dangerous for the U.S. economy.

Trump posted on Truth Social:

“The easiest way to save billions is to stop giving money to Elon.”

Musk Responds: “Impeach Trump”

Musk replied on X (formerly Twitter), agreeing with a post that suggested Trump should be impeached. He also claimed he spent $300 million supporting Republicans in the last election and said Trump wouldn’t have won without his help.

Later, Musk even asked his followers if it’s time to start a new political party for people who don’t fully support either side.

Tesla Stock Drops 14.3%

After the public argument, Tesla’s stock fell 14.3% in one day, wiping out $150 billion in value. It was the biggest drop in the company’s history. Investors are now worried Musk is spending more time on politics than business.

SpaceX Threatened, Then Not

Musk also said he might shut down SpaceX’s Dragon spacecraft, which is the only U.S. craft able to send astronauts to space. But a few hours later, he changed his mind and said he won’t do it—at least for now.

EV Credits and the Big Bill

One reason for the fight is Trump’s plan to remove electric vehicle (EV) tax credits, which would hurt Tesla sales. Trump said Musk is angry because of that. But Musk says he’s upset about the huge national debt and called Trump’s bill a

“mountain of disgusting pork” (meaning wasteful spending).

Musk posted on X:

“KILL the BILL.“

Global Reactions

In the UK, Tesla is facing protests over Musk’s political actions. In Australia, people are worried about how this fight might hurt SpaceX projects and exports. Musk’s image is taking a hit globally, not just in the U.S.

Could This Hurt the Republicans?

This fight could be bad for the Republican Party, especially with the 2026 midterm elections coming up. Musk had been one of Trump’s biggest supporters and helped him get donations from Silicon Valley and other tech investors.

Now, Musk says he will cut back on political donations, which could weaken Trump’s support.

Some voices, like investor Bill Ackman, are calling for peace between Trump and Musk. Musk replied,

“You’re not wrong,”
which might mean he’s open to calming things down.

But with both men known for strong opinions and big egos, this feud may just be getting started.