A dramatic rift between U.S. President Donald Trump and billionaire entrepreneur Elon Musk is sending political and economic shockwaves across the globe.
Once considered allies, the relationship soured after Musk publicly criticized Trump’s new federal spending bill, calling it an “abomination.” In response, President Trump threatened to cancel lucrative government contracts with Musk’s companies—including SpaceX, which holds key deals with NASA and the U.S. military.
Adding to the fallout, Trump on Friday dismissed Musk as, quote, “a man who has lost his mind,” while hinting that federal subsidies for Tesla and other Musk-led ventures could soon come under review.
Markets responded swiftly. Tesla shares plunged 14% on Thursday but staged a partial rebound on Friday as both sides appeared to tone down hostilities.
Despite the rhetoric, President Trump appeared to downplay the dispute during a media interaction Friday, saying he was “too busy working on international issues” to focus on Musk.
The rift has raised concerns over the future of U.S. space leadership, particularly as SpaceX plays a central role in projects like the Artemis Moon mission and military satellite launches.
Analysts say the mutual dependence between Musk’s companies and the U.S. government may force both sides to seek common ground—at least for the sake of national interest.