Saturday, March 29, 2025
A dramatic clash has erupted between two of the world’s most influential figures—tech mogul Elon Musk and former U.S. President Donald Trump—captivating global attention. On one side stands Elon Musk, the world’s richest man and CEO of Tesla, SpaceX, and social media platform X. On the other side is Donald Trump, arguably the most powerful political force in America and a frontrunner in the 2024 presidential race. What once was a relationship marked by mutual admiration has now spiraled into a fierce political and economic battle. But as tensions escalate, the key question arises—who stands to lose the most?
The conflict began when Elon Musk publicly criticized Trump’s proposed “Big Beautiful Bill,” a sweeping legislative package aimed at tax cuts, increased border security, and reductions in welfare programs like Medicaid and food assistance. Musk condemned the bill as “disgusting” and a “massive spending mistake” that could plunge the U.S. economy into recession.
Trump retaliated by calling Musk “unhinged” and expressed disappointment in him. He even hinted at revoking federal contracts awarded to Musk’s companies. In turn, Musk threatened to withdraw SpaceX’s Dragon spacecraft from NASA missions—although he later walked back that threat.
Tensions escalated further when Musk suggested on X that Trump’s name was allegedly linked to sealed documents involving Jeffrey Epstein—claiming this was why the records remained classified. The post stirred even more controversy and sharpened the personal animosity.
Musk’s deepening feud with Trump could significantly affect his business empire. Tesla’s autonomous vehicle ambitions, SpaceX’s government partnerships, and X’s advertising revenue are all vulnerable.
In 2023 alone, SpaceX secured nearly $3 billion in federal contracts across 100 agreements with 17 government agencies. If Trump wins back the presidency and revokes these, SpaceX could suffer major financial losses.
Tesla is already struggling. The company’s stock dropped 14.2% in a single day amid the controversy, slashing $152 billion from its market cap and $33 billion from Musk’s personal fortune.
Trump ally Steve Bannon has called for investigations into Musk’s citizenship status and a possible government takeover of SpaceX under the Defense Production Act—though legal experts say such a move is improbable. Still, the rhetoric alone signals heightened risks for Musk.
Tesla’s much-hyped robotaxi rollout is scheduled for testing in Austin, Texas. But the U.S. National Highway Traffic Safety Administration (NHTSA) and the Department of Justice are already scrutinizing Tesla’s technology for performance and safety. Trump’s administration, if elected, could further stall or block these plans.
Investor enthusiasm is also waning. After soaring on robotaxi hopes, Tesla shares crashed when the Musk-Trump feud surfaced. Analysts say this fallout could erode market confidence.
Tesla earns hundreds of millions annually by selling carbon credits to automakers failing to meet emission standards. Trump-aligned lawmakers are now pushing budget amendments to eliminate such penalties, potentially drying up this revenue stream. Musk downplays the importance of this income, but in Q1 2025 alone, Tesla earned $595 million from it.
While Trump can inflict political and financial damage, the conflict might not be cost-free for him either. Musk has a loyal fanbase and a global influence—especially on social media through X. The backlash to perceived retaliation against Musk could alienate moderate voters or tech-savvy demographics.
Musk’s move to distance himself from Trump may also win back environmentally conscious customers who had abandoned Tesla over Musk’s earlier support of conservative views.
SpaceX is currently the only U.S. firm capable of ferrying NASA astronauts to the International Space Station. If Trump cuts federal ties, America may be forced to depend again on Russian Soyuz capsules—an unappealing geopolitical option. While Musk threatened to decommission the Dragon spacecraft, he later reassured it would continue operations.
Starlink, Musk’s satellite internet venture, recently signed major deals in India, Saudi Arabia, Bangladesh, and Pakistan. India alone issued a major license on Friday. With over 40% of India’s population still offline, this represents a crucial growth market. However, political instability surrounding Musk could affect foreign partnerships.
After Musk allowed controversial content and conspiracy theories to spread on X, many major brands withdrew advertising. Some have since returned, but a renewed Trump-Musk feud may further damage X’s brand reputation. Experts say future ad revenue depends on how this conflict unfolds and resolves.
Ultimately, the Elon Musk vs Donald Trump clash is more than a battle of egos—it’s a high-stakes showdown with global implications. Both men risk significant political and financial fallout. But with Musk’s companies deeply embedded in federal contracts and markets, the risks for him might just be higher.
