Elon Musk and Donald Trump’s Political Breakup Goes Public
Once allies, the tech mogul and the president are now locked in a bitter feud over spending, subsidies, and power
Hey Small Biters,
The alliance between Elon Musk and President Donald Trump has unraveled dramatically, transforming from mutual admiration to a public and acrimonious feud. Their relationship, once characterized by shared goals and political support, has deteriorated over disagreements surrounding the "One Big Beautiful Bill Act," a sweeping legislative package aimed at extending tax cuts and reducing government spending.
Musk, who previously served as the head of the Department of Government Efficiency (DOGE) and was a significant donor to Trump's 2024 campaign, has vehemently opposed the bill. He criticized it as a "disgusting abomination," highlighting its potential to increase the national deficit by $2.5 trillion and its cuts to electric vehicle subsidies, which directly impact his businesses.
The president responded by expressing disappointment in Musk's stance, suggesting that Musk's criticisms were motivated by personal financial interests rather than genuine concern for fiscal responsibility. Trump also hinted at the possibility of revoking federal contracts and subsidies for Musk's companies, escalating the tension between the two.
Musk's departure from his advisory role in the administration marked the beginning of this rift. Following his exit, he launched a campaign against the bill, urging lawmakers to reject it and accusing the administration of fiscal irresponsibility. His public denouncement has been amplified through his social media platform, X, where he has rallied support against the legislation.
The fallout has had tangible effects on the market. Tesla's stock experienced a significant drop, and Musk's other ventures, including SpaceX, face uncertainty regarding future government contracts. This financial turbulence underscores the high stakes involved in their political and business entanglements.
The "One Big Beautiful Bill Act" itself has been a point of contention beyond the Musk-Trump feud. Critics argue that the bill disproportionately benefits the wealthy and undermines social safety nets, while supporters claim it is necessary for economic growth and fiscal responsibility. The bill's passage remains uncertain amid growing opposition.
Musk's political ambitions have also come under scrutiny. His suggestion of forming a new political party to represent centrist views indicates a potential shift in the political landscape, challenging the traditional two-party system and signaling his desire for greater influence in national politics.
The personal nature of the feud has intensified, with Musk making allegations about Trump's associations and calling for his impeachment. These accusations have further strained their relationship and drawn public attention to the complexities of their alliance and subsequent fallout.
Observers note that the clash between Musk and Trump reflects broader tensions between private influence and public governance. The situation raises questions about the role of wealthy individuals in shaping policy and the potential conflicts that arise when personal interests intersect with national decision-making.
As the feud continues to unfold, it serves as a cautionary tale about the volatility of political alliances and the challenges of balancing personal ambition with public service. The outcome of this conflict may have lasting implications for both figures and the broader political and economic landscape.
Exchanges of messages on X
✍️
"From allies to adversaries, the path was swift,
Ambitions clashed, causing a rift.
When power and profit intertwine,
The fallout can be by design.""In halls of power, egos collide,
Once unified, now they divide.
A lesson in alliances made,
When personal gains begin to fade.""The richest man, the nation's chief,
Entangled now in public grief.
A saga of ambition's cost,
In politics, no love is lost."
🧭 A Small Bite to Carry
The Musk-Trump feud highlights the fragility of political alliances built on mutual benefit rather than shared principles.
The dispute has led to market instability, particularly affecting Musk's companies, and raises concerns about the influence of personal interests on public policy.
The situation underscores the need for clear boundaries between private influence and public governance to maintain democratic integrity.
US Stocks
Stocks sink as the president fights with the world’s richest man
US stocks erased early losses to climb to session highs after President Donald Trump said he had “a very good phone call with President Xi of China” before giving up all those gains in the afternoon to finish in the red as the president had a very public spat with Tesla CEO and world’s richest man Elon Musk — who’s ending the day many billions less wealthy than he started it.
The S&P 500 closed down 0.5%, the Nasdaq 100 fell 0.8%, and the Russell 2000 finished marginally in the red.
Musk has taken exception with the “big, beautiful bill” making its way through Congress (which, among other things, would see electric vehicle tax credits eliminated), prompting Trump to declare that he was “very disappointed” in Musk. The Tesla CEO then claimed Trump would have lost the election without his help, and shares of the EV maker cratered as the barbs continued to fly between the two sides.
It was the 11th-worst day on record for Tesla, which tumbled 14.3%. The public spat also weighed on other “Trump trades” like Palantir.
Other big losers included Winnebago, which announced it’s laying off even more workers after posting preliminary third-quarter results that disappointed. And while a stiff drink may be in order after the chaos of the day, not enough folks have been indulging for Brown-Forman’s taste. The seller of Jack Daniel’s tumbled after whiffing on the top and bottom lines while calling for net income to fall for the full year.
What Else Are We Biting
Uber’s having drivers train its AI while partnering with robotaxi companies that could replace them.
Anthropic unveils custom AI models for US national security customers.
Walmart and Wing expand drone delivery to five more US cities.
Biting Fact Of The Day
ChatGPT is officially clocking more site visits than Wikipedia.
The alliance between Elon Musk and President Donald Trump has unraveled dramatically, transforming from mutual admiration to a public and acrimonious feud. Their relationship, once characterized by shared goals and political support, has deteriorated over disagreements surrounding the "One Big Beautiful Bill Act," a sweeping legislative package aimed at extending tax cuts and reducing government spending.
IMPEACH AND DUMP TRAITOR , NAZIS , FELONS, AND CON REPUBLICONS EVERYWHERE. YES CON REPUBLICONS, CLIMATE CHANGE IS DANGEROUS, REAL, DISRUPTIVE WORLDWIDE, COSTLY, AND PREVENTABLE. STOP DENYING CLIMATE CHANGE AND FACE THE SCIENCE . DUMP THE CON RTRUMP AND CRONIES.