In a shocking and chaotic unravelling of one of the most powerful alliances in recent US political and corporate history, tech mogul Elon Musk has publicly called for the impeachment of US president Donald Trump while announcing the immediate decommissioning of SpaceX’s vital Dragon spacecraft. The fallout, sparked by allegations, insults and political policy clashes, has not only thrown Washington into a frenzy but also rattled markets, with Tesla losing over US$150bn (billion) in value within hours of the public feud escalating.
The dramatic turn of events began with president Trump threatening to 'terminate Elon’s governmental subsidies and contracts' — a move that could cripple Mr Musk’s extensive government-linked ventures, including space exploration, satellite launches, and renewable energy projects.
President Trump declared on his platform Truth Social, “The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon's governmental subsidies and contracts. I was always surprised that (former president) Biden didn't do it!”
Shortly thereafter, Mr Musk detonated a digital bombshell by accusing president Trump of being linked to the infamous Jeffrey Epstein files — a claim that has triggered a media firestorm. “Time to drop the really big bomb: Donald Trump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!” Mr Musk posted on X (formerly Twitter).
The White House, scrambling to control the narrative, issued a sharp but dismissive response. Press secretary Karoline Leavitt says: “This is an unfortunate episode from Elon (Musk), who is unhappy with the 'one big beautiful bill' because it does not include the policies he wanted. The president is focused on passing this historic piece of legislation and making our country great again.”
However, Mr Musk’s grievances run deeper. He has expressed outrage over what he perceives as the administration’s betrayal, particularly the removal of electric vehicle (EV) tax incentives in president Trump's flagship 'one big beautiful bill'.
In several blistering posts, the Tesla chief accused president Trump of rewarding oil & gas industries, while punishing green tech, writing, “Very unfair!!” and calling the legislation a “disgusting abomination.” He added, “This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!”
The dramatic rupture between the president of the US and the world’s wealthiest man has left both political analysts and Wall Street stunned. The fallout is not just rhetorical. Mr Musk announced that SpaceX would begin dismantling its Dragon spacecraft, the very module that helped rescue two stranded NASA astronauts from the International Space Station (ISS) earlier this year.
SpaceX has called the Dragon “the only spacecraft currently flying that is capable of returning significant amounts of cargo to Earth.”
The implications of this move are enormous. NASA and international space partners depend heavily on SpaceX’s Dragon for cargo deliveries and crew transportation to and from the ISS. The sudden decision to decommission the programme over a political feud signals an uncharted era in how private space companies might wield their influence — or weaponise it.
The once-tight Trump-Musk relationship had been built on mutual admiration, shared goals and political ambition. Mr Musk backed Mr Trump vocally and financially, reportedly donating over US$250mn (million) to his campaign and becoming a key adviser on the president’s efficiency council. He was even spotted flying aboard Air Force One, staying in the Lincoln Bedroom at the White House, and attending Cabinet meetings wearing a MAGA (make America great again) hat.
At a press conference on Thursday, president Trump, seated with Germany’s leader in the Oval Office, said he was “very disappointed in Elon (Musk),” hinting at a complete breakdown in trust. The president mocked Mr Musk’s recent black eye — which the Tesla chief claimed came from his young son — but used it as a metaphor for the bruises left by the tech billionaire’s stint in public service. “I said, ‘Do you want a little makeup? We’ll get you a little makeup.’ Which is interesting,” Mr Trump quipped.
President Trump insisted that Mr Musk’s opposition to the bill stems from being left out of the process and the elimination of policies that benefited Tesla. “Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy electric cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY,” the president claimed, despite the fact that no such mandate ever legally existed.
Meanwhile, Mr Musk has accused the president of ingratitude, suggesting that Mr Trump would not have won the election without his financial backing. “He hasn’t said bad about me personally, but I am sure that will be next,” president Trump said, hinting at more personal mudslinging to come.
And, indeed, it has come. The Epstein allegation marks a new low in the rapidly intensifying feud. While the contents of the Epstein files have long been a point of political controversy and speculation, Mr Musk’s direct accusation targeting president Trump has opened up another explosive front in the battle.
In the markets, the damage was immediate and severe. Tesla stock plunged by more than 14% as investors reacted to the volatility. More than US$150bn of Tesla’s market capitalisation was wiped out in a single day — a loss greater than the entire market cap of many large corporations.
Mr Musk personally suffered one of his worst financial days, losing about US$27bn from his net worth. Yet he remains the world’s richest man with an estimated fortune of US$388bn, according to the Forbes Real Time Billionaires List at Thursday’s market close. The Tesla chief is still far ahead of the next richest person, Mark Zuckerberg, whose net worth is listed at US$236bn. President Trump, meanwhile, ranks no689 with a net worth of US$5.4bn.
Analysts worry that the public spat could further erode confidence in Musk-led companies, especially those dependent on government collaboration.
Politically, the split has deep implications for the Republican party also known as the grand old party (GOP) and its billionaire donors. Mr Musk had positioned himself as a financial powerhouse within the party, especially after supporting Mr Trump in the wake of the July 2024 assassination attempt. His departure from the president Trump camp raises questions about whether the GOP can count on Silicon Valley-style war chests going forward.
President Trump, in his remarks, downplayed the Tesla chief’s contributions. “Look, Elon (Musk) and I had a great relationship. I don’t know if we will anymore,” he said, accusing the billionaire of suffering from 'Trump Derangement Syndrome'. He added, “Some people who leave my administration miss it so badly they actually become hostile.”
For now, the US government must brace for potential disruption in its space programme. The cancellation of Dragon alone could delay crucial missions to the ISS and compromise planned satellite deployments. If further retaliation ensues—such as contract terminations from president Trump’s side or programme shutdowns by Mr Musk—the cascading impact could reach deep into America’s scientific and defence infrastructure.
At the heart of it all is an unprecedented standoff between two men who once seemed inseparable allies. It is not just a political divorce, it is a rupture that could reshape the landscape of technology, defence, and governance in America.
The 'Broken Arrow' may have once referred to a lost nuclear weapon, but in 2025, it aptly describes the high-profile, high-stakes detonation of the Trump-Musk alliance. Where the debris lands—and who gets buried in it—remains to be seen.
