Trump-Elon Musk feud escalates over Epstein allegations

• Trump threatens to cut federal contracts with Elon Musk
• Musk accuses Trump of connection with Jeffrey Epstein
• Tesla shares plunge after Trump-Musk tensions

Relations between Donald Trump and Elon Musk reached a new level of tension this week after the billionaire harshly criticized a tax and spending package proposed by the former president. In response, Trump said he intends to end all federal contracts with Musk's companies, which caused a strong impact on the financial markets.

On X (formerly Twitter), Musk wrote: “@realDonaldTrump is in the Epstein files. That’s the real reason they weren’t made public. Have a great day, DJT! Pin this post for the future. The truth will come out.” The accusation set social media ablaze and deepened the political rift between the two, who until recently had a strategic alliance.

Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.

Have a nice day, DJT!

- Elon Musk (@elonmusk) June 5, 2025

Trump, in turn, used Truth Social to retaliate . “The easiest way to save money in our budget, billions and billions of dollars, is to end Elon’s government subsidies and contracts,” he said. At a press conference, he also said, “Elon was burning out. I asked him to go.”

Tensions escalated after Musk called Trump's plan a "disgusting abomination" and urged his 220 million followers to oppose it. He also launched a poll on the creation of a new political party that would focus on the center of the ideological spectrum.

Shares of Tesla, one of Musk's main companies, have fallen 20% following the public friction, representing a loss of $150 billion in market value. Analysts interpret the move as a direct reflection of the political instability between the two influential figures.

Musk recently stepped down as Trump's appointed director of the Office of Government Efficiency after helping the former president shore up support among big Silicon Valley donors. As of 2024, the businessman had contributed nearly $300 million to Republican campaigns.

According to a White House source, the government considers Musk's recent actions to be a breach of trust, which would justify cutting ties with the billionaire.