Elon Musk vs. Donald Trump: The Feud and Its Impact on Tesla

In mid-2025, tensions between Elon Musk, CEO of Tesla and SpaceX, and former U.S. President Donald Trump escalated into a highly public feud that sent ripples across the political and business landscapes. This article explores the origins of their conflict, its effects on Tesla’s stock and business, and the broader implications for Musk’s political ambitions.

Background: A Complicated Relationship

Initially, Elon Musk and Donald Trump maintained a cooperative relationship. Musk served as an informal advisor during Trump’s presidency, and both shared interests in advancing American technological innovation, especially in renewable energy and space exploration.

However, cracks began to appear as their political and economic views diverged. Musk often voiced concerns over certain Trump policies, particularly those related to fiscal management and trade.

The Trigger: The “Big Beautiful Bill”

The feud intensified when President Trump signed the “Big Beautiful Bill,” a major federal budget and tax package. Musk publicly criticized the legislation, calling it an irresponsible fiscal move that could hamper economic growth and innovation in the United States.

In response, Trump hinted at reviewing government subsidies granted to Musk’s companies, Tesla and SpaceX. This public back-and-forth heightened tensions and worried investors.

Impact on Tesla

The public dispute took a tangible toll on Tesla’s stock price. In early June 2025, Tesla shares dropped by approximately 15%, marking the largest one-day decline the company had experienced since the COVID-19 pandemic’s peak.

This volatility wiped out billions of dollars in market value and raised investor concerns about Tesla’s future amid uncertain political support.

Musk’s Political Ambitions: Founding the “America Party”

Amid the feud, Elon Musk announced the creation of a new political party, the “America Party,” aimed at providing a centrist alternative to the traditional two-party system in the U.S.

While some viewed this move as a genuine effort to reshape American politics, others questioned the practicality and potential impact of such a new political entity, given the entrenched nature of U.S. political parties.

Potential for Reconciliation?

Despite the conflict, recent statements from both sides suggest the possibility of reconciliation. Trump has expressed willingness to move past the dispute, stating he holds no personal grudges against Musk.

However, the future of their relationship remains uncertain, and the long-term consequences for Tesla and Musk’s broader business and political endeavors are still unfolding.

Conclusion

The feud between Elon Musk and Donald Trump highlights how political dynamics can directly influence major corporations and their leaders. As Musk navigates both business challenges and political aspirations, the coming months will be crucial in determining the trajectory of Tesla and the potential reshaping of the American political landscape.