Elon Musk speaks during a news conference with President Trump in the Oval Office of the White House, Friday, May 30, 2025, in Washington.
After months of public alignment, the once-surprising alliance between President Donald Trump and billionaire Elon Musk has collapsed dramatically. What started as minor policy disagreements has spiraled into personal attacks, political maneuvering, and economic consequences. The Trump-Musk feud is now rippling through Washington and Wall Street.
Sparks Fly Over Legislative Disputes
The fallout began when Musk openly criticized Trump’s major legislative proposal—a tax and immigration package. Calling it a “disgusting abomination,” Musk didn't hold back. While Trump initially downplayed the jab, he later admitted disappointment in his former adviser. That admission triggered a barrage of taunts from Musk, who ridiculed Trump’s policies and temperament on social media.
Eventually, Trump responded in full force, claiming Musk had “gone CRAZY” and that he had “asked him to leave” the administration. The public showdown escalated into a media frenzy, overshadowing key developments in the White House.
Democrats Seize on the Trump-Musk Fallout
House Democratic Leader Hakeem Jeffries quickly saw political opportunity in the Trump-Musk clash. Labeling it a “welcome development,” he emphasized unity in opposing Trump’s controversial tax bill.
“We agree with Musk,” said Jeffries. “This bill is a disgrace. Now’s the time to kill the GOP tax scam.”
Democrats are now using the rift to rally opposition and build momentum for blocking the administration’s proposals in Congress.
Senate Pushes Back on Pentagon’s Transgender Ban
In parallel, pressure is mounting on Trump’s Pentagon policy. Sen. Tammy Duckworth and 22 other Democrats urged a reversal of the transgender troop ban. They argued that discharging service members with gender dysphoria would hurt military strength and morale.
Their letter warned that the policy compromises national security and removes qualified troops from active duty. The Pentagon, however, maintains that the policy supports military efficiency.
Education Department Layoffs Face Supreme Court Test
Another Trump initiative under legal fire is the dismantling of the Education Department. After a federal judge reversed the mass layoffs of 1,400 employees, the administration appealed to the Supreme Court.
Solicitor General D. John Sauer criticized the judge, accusing him of inserting personal bias into federal governance. The case may determine how far Trump can go in reshaping federal agencies.
Trump’s Election Overhaul Faces Court Challenge
Democratic attorneys general from 19 states are also suing Trump over his attempt to overhaul U.S. election rules. The lawsuit claims the order violates the Constitution’s separation of powers by intruding on state authority.
At Friday’s hearing in Boston, government lawyers argued the order causes no immediate harm. However, states like California claim the cost of compliance would be immense.
Musk Retreats on SpaceX Threats Amid Escalating Dispute
Tensions between Trump and Musk bled into business. After Trump suggested cutting NASA contracts, Musk hinted at decommissioning SpaceX’s Dragon spacecraft. Hours later, Musk reversed course, saying he wouldn’t go through with it. The quick turnaround signaled damage control.
SpaceX remains the only American firm capable of manned ISS missions. The feud now threatens to destabilize crucial space exploration efforts.
Budget Proposal Threatens Tesla's Profit Model
Amid the feud, Senate Republicans proposed eliminating penalties for automakers who miss fuel economy targets. This move threatens Tesla’s profitable “regulatory credit” business.
Tesla earned $595 million from credit sales last quarter, even as overall revenue declined. Musk has downplayed the importance of credits, but the proposed changes could deal a serious blow.
Trump’s Focus Stays on Sports, Not Policy
While these political storms rage, Trump’s travel choices are drawing attention. He plans to attend UFC 316 in New Jersey this weekend—his fourth major sports event since taking office. Critics note he’s prioritized entertainment appearances over policy tours.
Johnson Remains Unfazed by Trump-Musk Rift
House Speaker Mike Johnson remains confident in the GOP’s agenda despite Musk’s sharp criticism. He confirmed text exchanges with Musk but stayed silent on details. “Members are not shaken,” Johnson told reporters. “We’ll meet our legislative deadlines.”
Watchdog Investigates Deleted Pentagon Messages
Adding fuel to the controversy, the Pentagon’s inspector general is investigating whether Defense Secretary Pete Hegseth’s aides deleted encrypted Signal messages about airstrikes. Some of the messages reached journalists by accident, raising serious questions about information security.
Harvard Wins Temporary Block on Foreign Student Ban
In yet another court loss for the Trump administration, a federal judge temporarily blocked a ban on foreign students at Harvard. The order accused Trump of targeting the university for political reasons. Harvard argued the ban would damage its academic output.
What’s Next for the Trump-Musk Saga?
Despite the chaos, Trump insists he isn’t interested in talking to Musk—though sources say Musk is seeking a conversation. Meanwhile, Tesla stock plunged over 14% as investors reacted to the drama. No call has been scheduled between the two.
This feud, rooted in ego and policy, is no longer just a personal spat. It’s a national spectacle with real-world consequences for politics, defense, education, and the economy. As the Trump-Musk relationship continues to unravel, the effects are being felt in boardrooms, courtrooms, and the halls of Congress.
