U.S. President Donald Trump has publicly declared that tech mogul Elon Musk has “lost his mind,” deepening a growing rift between two of the world’s most powerful men.
Once close allies, Trump and Musk are now locked in a high-profile war of words after Musk slammed Trump’s latest spending bill, calling it an “abomination.” The fallout has sent shockwaves through political and business circles, with observers saying the Trump-Musk fallout could have wide-reaching consequences.
Speaking to ABC, Trump didn’t hold back. When asked about the billionaire SpaceX boss, he snapped, “You mean the man who has lost his mind?” He added that he was “not particularly” interested in speaking to Musk anymore.
Just a week earlier, Trump had praised Musk during his departure from the Department of Government Efficiency (DOGE), a short-lived cost-cutting initiative that Musk briefly headed. But tensions boiled over this week after Musk’s fierce criticism of Trump’s mega-spending package, which is already facing an uphill battle in Congress.
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Trump fired back during an Oval Office address on Thursday, saying he was “very disappointed” in Musk. The former president later told Fox News that Musk had “lost it,” while CNN reported Trump’s blunt dismissal: “I’m not even thinking about Elon… The poor guy’s got a problem.”
The Trump-Musk fallout has also hit Wall Street. Tesla’s stock plunged by over 14% on Thursday, wiping out nearly $100 billion in market value before partially recovering on Friday. In the White House, Trump is considering selling or even donating the cherry red Tesla S he purchased from Musk earlier this year, a symbolic gesture that would signal the ultimate rupture in their now-failed friendship.
Fueling the fire further, Musk retaliated with a spurious allegation associating Trump with convicted financier Jeffrey Epstein, ratcheting up matters further. Trump, in response, reportedly threatened to cancel key government contracts with SpaceX, including multi-billion-dollar rocket and satellite deals.
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Though Musk appeared to pull back by downplaying his earlier threat to cancel the Dragon spacecraft program — vital for NASA missions — the silence on his X platform (formerly Twitter) suggests he may be regrouping.
Meanwhile, White House officials confirmed there are no plans for a Trump-Musk call, though sources claim Musk had requested a conversation.
While Trump may hold political clout, Musk also has influence, particularly in campaign financing. The billionaire was one of Trump’s top donors in 2024, contributing nearly $300 million. With midterm elections on the horizon, Musk’s financial support—or lack thereof—could shape the Republican landscape moving forward.
