US President Donald Trump said on Friday that Elon Musk had “lost his mind,” but signaled a desire to move past the explosive rift with the billionaire entrepreneur, his former ally and one of his top political donors.
The dramatic break between the tech magnate and the president is sending shockwaves through Washington and Wall Street, with implications for politics, business, and national security.
The relationship, once marked by mutual praise and influence, unraveled quickly after Musk slammed Trump’s proposed spending bill as an “abomination.” In response, Trump said he was “very disappointed” in Musk — and has since escalated his rhetoric.
Speaking aboard Air Force One en route to his New Jersey golf club, Trump told reporters, “I’m not thinking about Elon Musk, I just wish him well,” though he couldn’t resist a jab, calling Musk “the man who has lost his mind” in a separate interview.
Trump, 78, confirmed he had scrapped a planned call with Musk and is even contemplating getting rid of the red Tesla he famously purchased in March during a light-hearted White House event — a symbolic end to their once-close relationship.
The feud intensified after Musk not only criticized Trump’s mega-spending bill — which faces opposition for potentially increasing the deficit and slashing healthcare benefits — but also lobbed personal accusations against the president, referencing Jeffrey Epstein without presenting any evidence.
In retaliation, Trump floated the idea of terminating SpaceX’s multi-billion-dollar contracts with NASA and other government agencies, while hinting that any such move would only happen if it was “fair for him and the country.”
Amid the chaos, Tesla stocks plunged more than 14% on Thursday, wiping $100 billion off the company’s value before partially recovering on Friday. Musk has since gone quiet on his social media platform X, and reportedly attempted to de-escalate tensions by backing away from his threat to shut down the Dragon spacecraft program.
The fallout could have longer-term political consequences. Musk’s donation of nearly $300 million to Trump’s 2024 campaign made him the largest contributor, and any future support — including for the 2026 midterms — now seems highly unlikely. With Musk potentially redirecting his resources elsewhere, Trump may face new challenges on the conservative front.
What you should know
The feud between Trump and Musk is no longer just personal — it’s political and financial.
Their fallout could reshape alliances within the Republican Party, impact defense and space partnerships, and influence campaign funding ahead of key elections.
While both parties appear to be softening their tone, the damage may already be done.
