How Trump and Musk’s explosive feud could escalate further
What started as a bromance between two billionaires has descended into a mud-slinging match in a matter of days.
Since Elon Musk’s exit from the White House last week, he has denounced Donald Trump’s tax-cut and spending bill, suggested the President should be impeached, and claimed his former boss is named in files related to convicted sex offender Jeffrey Epstein.
Trump has lashed out a his former ally, declaring Musk is “crazy” and has “lost his mind”.
“I’m not even thinking about Elon. He’s got a problem. The poor guy’s got a problem,” he said.
Though their back-and-forth appeared filled with petty or outlandish claims, the public clash could carry serious legal and financial consequences.
Huge financial losses
Tesla shares plunged by approximately 14.2 per cent by the market’s close on Thursday, slashing around $152bn from the company’s market value and bringing its total valuation down to roughly $900bn.
Musk also experienced the personal consequences of his break-up with Trump as his net worth dropped by $33bn on Thursday, according to the Bloomberg Billionaires Index, marking one of the steepest single-day losses he has ever experienced.
Despite the hit, Musk remains the world’s richest person, with an estimated net worth of $335bn.
But beyond Musk’s personal fortune, his explosive exit from the White House could also have significant repercussions for the US government, and risks turning a personal clash into a national liability.
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Musk has now hinted at the possibility of pulling SpaceX out of key US projects if the administration penalises his projects, which include defence-related contracts and Nasa partnerships.
SpaceX is currently one of the government’s most reliable and cost-efficient aerospace partners. Losing access to its launch capabilities or satellite systems would not only impact national security and space exploration goals but also set back America’s technological leadership on the global stage.
Such a move could cost the federal government billions in delays and renegotiations of contracts elsewhere by forcing it to turn to more expensive alternatives.
Legal implications for Trump
Musk has alleged Trump is named in the infamous Epstein files, which reportedly contain the names of high-profile political figures and business leaders with links to Epstein’s criminal activity and sexual exploitation of young women.
There is no evidence that Trump was involved in any criminal activity with Epstein and he has repeatedly denied any connection to it.
Before he was re-elected in November, Trump had said he would have “no problem” releasing Epstein-related files.
Musk has claimed that these revelations could pose a serious legal challenge for Trump, however.
“Time to drop the really big bomb,” Musk wrote on X. “[Trump] is in the Epstein files. That is the real reason they have not been made public.”
Musk has also suggested Trump should be impeached for a third time. Unlike criminal indictment, which is a legal process, impeachment is a political process in which the US Constitution allows Congress to impeach a sitting president for “high crimes and misdemeanors”.
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This unprecedented scenario, were it to happen, would begin in the House of Representatives, requiring a simple majority to pass articles of impeachment, followed by a trial in the Senate.
At which point political support would be crucial for Trump, who was acquitted by the Senate both times he was impeached.
Political ramifications
Musk’s high-profile criticism and public accusations risk alienating moderate voters and creating divisions within the GOP, especially at a time when starting to foster unity is crucial ahead of next year’s midterm elections.
Musk actively campaigned for Trump and supported his political rise. The tech mogul reportedly invested up to $300m in Trump’s presidential campaign last year, along with contributions to other Republican causes, and has claimed credit for the president’s re-election.
“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk wrote on X. “Such ingratitude.”
Musk also proposed the creation of a new political party to represent “the 80 percent” of centrist Americans.
When hedge fund manager and Trump donor Bill Ackman urged Trump and Musk to “make peace for the benefit of our great country” on X, Musk responded with a brief acknowledgment: “You’re not wrong.”
As Musk commands a massive social media following and considerable influence in tech and business circles, his opposition could undermine Trump’s ability to rally key constituencies and donors.
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