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Al Mayadeen's correspondent: An Israeli drone targeted a residential apartment in the al-Natour Square in the Sheikh Radwan neighborhood of Gaza City

Trump-Musk feud boils over budget and explosive Epstein claim

  • By Al Mayadeen English
  • Source: News websites
  • 5 Jun 2025 22:28
3 Min Read

As Trump threatens to cut off federal contracts and Musk fires back with explosive claims, their public fallout reveals deeper divisions over political loyalty, spending priorities, and personal power.

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  • FILE - Elon Musk carries his son X Æ A-Xii as they arrives on Air Force One with President Donald Trump, left, at Miami International Airport, April 12, 2025, in Miami, Fla. (AP)
    Elon Musk carries his son X Æ A-Xii as they arrive on Air Force One with US President Donald Trump, left, at Miami International Airport, April 12, 2025, in Miami, Florida. (AP)

The once-powerful alliance between President Donald Trump and Elon Musk unraveled Thursday in a dramatic and public rupture triggered by a government spending bill dispute, followed by threats, insults, and market turmoil.

Speaking from the Oval Office alongside German Chancellor Friedrich Merz, Trump expressed deep frustration, “I’m very disappointed in Elon. I’ve helped Elon a lot. Elon and I had a great relationship. I don’t know if we will anymore.”

🤨 https://t.co/RzQIyrWmTy

— Elon Musk (@elonmusk) June 5, 2025

The fallout began after Musk described Trump’s new budget proposal as an “abomination” that would deepen the national deficit. In response, Trump delivered a televised broadside, calling Musk “crazy” and accusing him of ingratitude.

In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately pic.twitter.com/NG9sijjkgW

— Elon Musk (@elonmusk) June 5, 2025

“He’s wearing thin,” Trump said, claiming he had asked Musk to resign from his government role due to rising tensions over budget priorities.

Federal contracts and SpaceX under threat

Trump escalated the situation by threatening to cut off Elon Musk’s federal contracts, stating on Truth Social that “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”

This move would affect several key SpaceX government ties, including NASA missions and Starlink services that are currently funded through federal agreements.

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Musk responded in real-time on X, calling Trump “ungrateful” and asserting, “The Republican would not have won the 2024 election without me.” He then issued a bombshell allegation, stating that “Trump is in the Epstein files,” a reference to court documents related to disgraced financier Jeffrey Epstein.

Time to drop the really big bomb:@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.

Have a nice day, DJT!

— Elon Musk (@elonmusk) June 5, 2025

🤨 https://t.co/DTdfJWydLS

— Elon Musk (@elonmusk) June 5, 2025

He ended the post with: “Have a nice day, DJT!”

Tesla stock suffers after political spat

The feud’s impact rippled across financial markets. Tesla stock dropped more than $100 billion in value in a single day, as investors reacted to the escalating conflict and Trump’s threats to strip Musk’s companies of public funding.

Musk briefly announced the “decommissioning” of SpaceX’s Dragon spacecraft, only to later walk it back in a reply to a user, writing, “OK, we won’t decommission Dragon.”

White House Press Secretary Karoline Leavitt attempted to downplay the exchange, calling it “an unfortunate episode from Elon, who is unhappy with the ‘One Big Beautiful Bill’ because it does not include the policies he wanted.”

Meanwhile, Trump ally Steve Bannon was quoted by The New York Times as saying Musk should be deported, adding further fuel to a rapidly spiraling conflict.

Once allies, now rivals

Trump and Musk were once seen as close collaborators. Musk had even stayed at the White House and joined Trump aboard Air Force One.

He was appointed to lead the Department of Government Efficiency (DOGE), a short-lived role he later resigned from due to internal disagreements.

Though tensions had simmered for months over Trump’s fiscal agenda, the Trump budget backlash from Musk marked a turning point in what had been a strategic relationship, now fractured on the national stage.

Read more: Trump team rebuffed Musk’s request to extend govt. role: The Telegraph

  • United States
  • Trump administration
  • Elon Musk
  • Donald Trump

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