It was only a matter of yesterday that Donald Trump and Elon Musk were best buddies and working towards the single goal of making America great again. However, after a few months of reckless slashing of federal budgets and departments, Elon exited the Trump administration and no longer served as the head of the Department of Government Efficiency.
Musk did not like how things turned out for him and shortly after his exit, waged a public war with Trump where he made all kinds of allegations about the President and also harshly criticised his Big Beautiful Bill, something which he had supported when he was part of the administration.
However, things cooled down for a while between them with Musk extending an olive branch in the form of an apology, which Trump readily accepted. However, the drama did not end there and when things seemed to have been back to normal between the two, Musk again started raging against the Big Beautiful Bill and also mentioned that he would launch a political party of his own as that would give the Americans a choice outside of the existing two party system.
Musk even went so far as to say on X, “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!”
Is it time to create a new political party in America that actually represents the 80% in the middle?
— Elon Musk (@elonmusk) June 5, 2025
Trump also did not hold back and even threatened that he might deport Musk. While all of this has been happening verbally and online, a very graspable loss did happen and Musk suffered the burnt of it.
Reportedly, the feud has caused Musk to lose £14.7 billion ($20 billion). As reported by Irish Star, “the rift with the president has potentially hammered his company’s value even more severely, as investors are said to have hemorrhaged £73 billion ($100 billion) since their conflict flared up in June.”
The US news outlet Axios calculated that the losses led to somewhere around a 14% drop in Tesla’s shares since early last month. It should be noted here that when Musk was actively involved in matters of the government, his company had suffered a setback and there were instances of Tesla showrooms being vandalized. Now that he is out of it, his company continues to suffer.
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With Trump making threatening claims of departing Musk back to South Africa, his investors are naturally worried. There can be serious financial consequences if the company keeps losing money the way it is doing. However, it is important to note that despite the feud and the financial loss, both of Musk’s companies, SpaceX and Tesla, continue retaining hefty contracts with the U.S. government.
With Musk preparing to launch his new America Party and Trump publicly criticizing the idea, it now remains to be seen how far their feud stretches and how that affects Musk’s finances.
