Elon Musk and Donald Trump, the billionaire behind Tesla and SpaceX and former close allies, have splintered into a bitter public dispute that may affect Musk’s empire.
By June 2025 the tension between Musk and the other powerful figure has escalated, with insults and threats being traded via social media. This raises questions regarding the possible financial and operational damages to Musk’s businesses.
Elon Musk’s and Donald Trump’s relationship started to grow during Trump’s presidential campaign in 2024.
Musk’s influence on social media, and the fact that he owns X (formerly Twitter), was a key factor in Trump’s support.
Musk’s businesses, notably SpaceX, enjoyed favorable circumstances during the first months of Trump’s presidency.
SpaceX has continued to win lucrative contracts from the government with its Dragon rocket.
Tesla, Musk’s electric car giant, has also managed to navigate the policies of the Trump administration with relative ease despite Musk’s own occasional tariff concerns Musk raised in March 2025 on social media.
Musk’s influence was boosted in the political and economic realms during this period of mutually beneficial cooperation.
Musk and Trump’s feud
Musk referred to the “Big Ugly Bill” as a legislative initiative that sparked public discord.
Musk’s criticism of a federal spending bill for causing the deficit in the budget to reach $2.5 trillion, and for causing Americans to be saddled with unsustainable debt is at its core.
Musk’s opposition to the legislation, as expressed in posts on X site, angered Trump. Trump retaliated, threatening to slash government contracts linked to Musk’s businesses, including SpaceX.
Musk responded by claiming that he was responsible for Trump’s election victory and stating that the Democrats wouldn’t have been in control of key government branches without his backing.
The exchange has become personal and touched on issues unrelated to the Epstein Files, as well as raising the stakes in Musk’s interests.
SpaceX is especially concerned by the threat of terminating federal contracts, as it relies on partnerships with government for many aspects of its operation, such as missions that are critical for NASA and for national security.
Musk and his companies: Potential damages
SpaceX could be the first to suffer serious damage from this fallout.
SpaceX has contracts worth billions of dollars with NASA and Department of Defense. Any reduction in or cancellation of those agreements would have a severe impact on the company’s revenues and its long-term plans, like the Starship project aimed at Mars settlement.
Analysts believe that such a setback could affect investor confidence as well. SpaceX is still a privately-funded entity, and remains heavily dependent on government funding.
Tesla is still affected by the ripple effect, even though it has less direct ties to government contracts.
Musk previously warned about the negative impact tariffs would have on Tesla. Trump’s economic policy, which includes aggressive tariffs Musk had mentioned on X back in June 2025 could increase costs for Tesla.
Tesla’s already-competitive electric car market would be further challenged by a potential recession that Musk said could happen in the second half 2025 as a result of these tariffs.
Musk’s public feud may also harm his personal brand. This is because Musk’s name and Tesla’s are closely linked. It could affect consumer confidence, as well as stock performance.
Other Musk-related ventures, such as Neuralink or The Boring Company, could also face indirect effects.
If the Trump administration becomes hostile, regulatory scrutiny could increase.
Musk could be putting his ambitious plans in multiple industries at further risk by extending the timeframes for innovation and increasing operational costs.
The post Elon Musk’s Business Empire could be ruined by a War with Trump may change as new information becomes available
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