The Oval Office's gold-leaf decor provided a regal backdrop for what appeared to be a warm farewell ceremony just two weeks ago. Elon Musk, the world's richest person, stood shoulder-to-shoulder with Donald Trump as the president praised his "revolutionary work" reducing government waste. Fast forward to June 6, 2025, and these former allies are now trading nuclear-grade insults over X and Truth Social, their feud shaking Wall Street, reshaping political alliances, and threatening NASA's space program. At the heart of this spectacular fallout?
A 2,300-page legislative behemoth called the "One Big Beautiful Bill Act" – and two colossal egos that finally collided.
Also Read | Will the RBI Hit a Hat-Trick of 25 bps Rate Cuts on June 6?
From Bromance to Bankruptcy: The $250 Million Alliance That Crashed
This wasn't supposed to happen. Elon Musk emerged as Trump's most surprising 2024 ally, pumping $250 million into the Republican's comeback campaign and accepting a Cabinet-level role heading the Department of Government Efficiency (DOGE). "We're draining the swamp at Ludicrous Speed," Musk tweeted upon taking office in January 2025, riffing on Tesla's acceleration mode. For five months, the odd couple appeared united – Musk streamlining federal agencies while Trump championed his efforts at rallies.
The cracks began showing in April when Musk told Tesla investors he needed to refocus on his company. Then came May 22 – the day House Republicans passed their flagship legislation by a single vote. The "One Big Beautiful Bill Act" bundled massive corporate tax cuts with increased military spending and raised the debt ceiling, projected to add $1.5 trillion to the deficit over a decade.
Musk's breaking point came during a May 28 CBS interview: "A bill can be big or beautiful. I don't know if it could be both," he quipped, calling the legislation "counter-productive" to his efficiency goals. Within hours, he resigned his DOGE position via tweet, though still thanking Trump "for the opportunity”. The president responded with a lavish Oval Office sendoff, unaware this was merely the calm before the storm.
The $1.5 Trillion Tinderbox: Inside the "Disgusting Abomination"
What makes this bill so controversial? Let's unpack the key provisions that turned allies into adversaries:
-
Corporate Tax Cuts: Slashing rates from 21% to 15% for companies investing in domestic manufacturing
-
EV Subsidy Rollbacks: Eliminating $7,500 tax credits for electric vehicles – a direct hit to Tesla's bottom line.
-
SALT Deduction Changes: Capping state/local tax write-offs at $15,000, disproportionately affecting blue states
-
Remittance Tax Reduction: Cutting fees on international money transfers from 5% to 3.5%
-
NASA Funding Shift: Redirecting $6 billion from SpaceX's Dragon program to traditional aerospace contractors
Musk's initial criticism focused on fiscal responsibility. "Increasing the deficit during economic growth is like adding boosters to a sinking ship," he tweeted on May 29. But as Trump began implementing the EV cuts, the Tesla CEO's tone turned personal.
Twitter Warfare: A Minute-by-Minute Meltdown
The feud exploded during Trump's June 5 meeting with German Chancellor Friedrich Merz. With cameras rolling, the president dropped this bombshell:
"Elon knew this bill better than anyone. Now he's complaining? Total hypocrisy."
Musk responded in real-time on X:
@elonmusk: "False. Never saw the final bill. #TransparencyMatters"
@elonmusk [Retweeting 2012 Trump tweet] "National debt at $16 trillion! Obama disaster!" – Hypocrite much?
@elonmusk: "Without my $250M and 37 campaign rallies, you'd be golfing in Florida full-time. Pennsylvania, Michigan, Wisconsin – all mine."
Trump fired back on Truth Social:
@realDonaldTrump 11:29 AM: "Elon was WEARING THIN. I ended his precious EV mandate, and he LOST IT! Saved billions. CRAZY!"
@realDonaldTrump: "SpaceX contracts under review. We have better options!"
The billionaire's nuclear response came at 11:47 AM:
@elonmusk: "In light of the presidential temper tantrum, SpaceX begins decommissioning Dragon capsules immediately. Enjoy hitching rides with Boeing!"
Tesla stock plunged 8% within hours, erasing $60 billion in market value. Trump Media & Technology Group fell 12%, while the president's cryptocurrency ($TRUMP) crashed 15%.
Epstein Files and the "Body Double" Conspiracy
As markets reeled, Musk launched an October Surprise-level allegation:
@elonmusk 2:15 PM: "Funny how Epstein client lists stay hidden when certain people are involved. #ReleaseTheFiles"
Trump counterpunched by reviving old attacks:
@realDonaldTrump 3:02 PM: "Elon's immigration status should be reviewed! Also his illegal drug use!"
The surreal exchange peaked when Musk shared a deepfake video comparing Trump's 2015 and 2025 appearances:
@elonmusk 4:30 PM: "Notice anything different? Asking for a friend. #BodyDouble"
Legal analysts warn these accusations could trigger SEC investigations, while former Trump advisor Steve Bannon demanded probes into Musk's "foreign ties"
The Aftermath: A Nation Caught in the Crossfire
This feud's repercussions extend far beyond two billionaires' bruised egos:
-
Space Program Paralysis: NASA scrambled after Musk's Dragon announcement, with ISS resupply missions now in limbo3
-
EV Industry Chaos: Tesla slashed production as Republican states canceled fleet orders
-
Political Realignment: Musk floated creating a "Centrist Party," threatening GOP control
-
2026 Election Upended: The tech mogul vowed to fund primary challenges against bill supporters
Yet amidst the chaos, some see opportunity. "This could finally break the Tech Right's stranglehold," MSNBC's Rachel Maddow noted, while advertisers hope X might ease its controversial content policies.
As both men dig in, their once-unthinkable alliance now lies in ruins – a $1.5 trillion bill its funeral pyre.
For American politics, it's a stark reminder that in the age of billionaire kingmakers, policy disputes can escalate into personal Armageddon with a single tweet. The only certainty? This battle's next chapter will be written in 280 characters or less.
Also Read | Zepto’s Dharavi Hygiene Lapse Prompts FDA Suspension, Casting Doubt on IPO