
Trump and Musk set for showdown phone call after Epstein files claim
Donald Trump and Elon Musk are reportedly set for crunch talks over the phone today after their bromance came to a spectacular and petty end.
Taking to his X account yesterday, Mr Musk said it was "time to drop the really big bomb" before claiming that Mr Trump "is in the Epstein files". Mr Trump's name was released as previously sealed court documents were made public last year. There is no suggestion he knew of any crimes or participated in any criminal behaviour.
Once Mr Trump's right hand man, Mr Musk left his special government position as the Department of Government Efficiency a week ago.
Follow our liveblog below for all the latest updates...
Rapper Kanye West, who has repeatedly endorsed Donald Trump in the past, appeared to react to his feud with Musk yesterday.
Broooos please noooooo We love you both so much
On Thursday, Trump said he was "disappointed" with Musk's criticisms of his tax and spending bill.
Musk responded, saying: 'Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.'
'Such ingratitude,' he added.
The once-powerful alliance between President Donald Trump and billionaire Elon Musk has dramatically imploded.
After months of apparent unity, their relationship unraveled this week over Trump's sweeping tax bill. Tensions boiled over as Musk publicly called for Trump's impeachment and launched a series of scathing social media attacks - even accusing the president, without evidence, of appearing in the mysterious 'Epstein files.'
These documents, linked to disgraced sex offender Jeffrey Epstein, include secret travel logs and guest lists that have long fueled speculation and conspiracy theories.
Trump hit back hard, claiming he had already ousted Musk from his White House advisory role and hinting at slashing federal subsidies and contracts to the billionaire's companies.
The two are due to speak over the phone today.
Elon Musk has shared a wild conspiracy theory that President Donald Trump has been replaced by a body double.
Mr Musk hinted that his former pal may have been replaced by someone else when the two billionaires exchanged heated insults online.
"Where is the man who wrote these words? Was he replaced by a body double?" Mr Musk wrote, retweeting a post that detailed several occasions where he praised Mr Trump and his policies.
Where is the man who wrote these words?Was he replaced by a body double!? https://t.co/N4Mliip5U4
It was an explosive war of words which infamously blew up like one of Elon Musk's SpaceX rockets.
Yet in only a way Donald Trump could do, the maverick politician has today brushed it under the carpet. He came under interrogation by reporters - but somewhat found a way to give the spat with Mr Musk another spectacular dimension.
When asked about the very public breakup with his one-time megabacker, the nonchalant President said: "It's going very well, never done better." These bizarre seven words jar hugely with the farce which had played out on the world's stage just hours before - with both billionaires angrily posted about each other on social media.
Mr Trump and Mr Musk could speak on the phone today.
POLITICO reports White House aides scheduled a call with the billionaire Tesla owner to broker a peace, but adds that had to persuade the President to temper his public criticism of Mr Musk to avoid escalation.
Donald Trump was today urged to "deport Elon Musk immediately" amid the pair's blistering row.
The US President has also been encouraged to scrap all of the tech billionaire's contracts and launch several investigations into the world's richest man. Mr Musk, 53, had this week denounced Mr Trump's signature domestic policy bill as an "abomination" and, since then, tensions between the pair have escalated.
Yesterday, the SpaceX founder and the world leader, 78, sniped at each other from their own social media platforms with incendiary attacks over matters significant and petty. Now, Stephen K Bannon, one of Elon Musk's most vocal critics, has waded into the feud, branding the billionaire as "an illegal alien".
Investors bought hundreds of billions of dollars of Tesla stock after Donald Trump was elected on a bet that politics were more important than profits.
In three hours Thursday, they learned yet again how dangerous that gamble could be.
Shares of Elon Musk's electric vehicle maker plunged more than 14% in a stunning wipeout as investors dumped holdings amid a bitter war of words between the president and the world's richest man. By the end of the trading day, $150 billion of Tesla's value had been erased, more than what it would take to buy all the shares of Starbucks and hundreds of other big publicly traded U.S. companies.
The disagreement started over the president's budget bill, then quickly turned nasty. After Musk said that Trump wouldn't haven't gotten elected without his help, Trump implied that he may turn the federal government against his companies, including Tesla and SpaceX.
Donald Trump and Elon Musk's alliance took off like one of SpaceX's rockets but now it has spectacularly blown up and here are all the insults exchanged today.
The spectacular flameout Thursday peaked as Trump threatened to cut Musk's government contracts and the tech billionaire claimed that US government hasn't released all the records related to sex abuser Jeffrey Epstein because Trump is mentioned in them. There is no suggestion Donald Trump knew of any crimes or participated in any criminal behaviour. Musk even shared a post on social media calling for Trump's impeachment and skewered the president's signature tariffs, predicting a recession this year.
The messy blow-up between the president of the United States and the world 's richest man played out on their respective social media platforms after Trump was asked during a White House meeting with Germany's new leader about Musk's criticism of his spending bill.
The messy blow-up between the president of the United States and the world's richest man played out on their respective social media platforms after Trump was asked during a White House meeting with Germany's new leader about Musk's criticism of his spending bill.
Trump had largely remained silent as Musk stewed over the last few days on his social media platform X, condemning the president's so-called 'Big Beautiful Bill.' But Trump clapped back Thursday in the Oval Office, saying he was 'very disappointed in Musk.'
Musk responded on social media in real time. Trump, who was supposed to be spending Thursday discussing an end to the Russia-Ukraine war with German Chancellor Friedrich Merz, ratcheted up the stakes when he turned to his own social media network, Truth Social, and threatened to use the U.S. government to hurt Musk's bottom line by going after contracts held by his internet company Starlink and rocket company SpaceX.
'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts,' Trump wrote on his social media network.
'Go ahead, make my day," Musk quickly replied on X.
Hours later, Musk announced SpaceX would begin decommissioning the spacecraft it used to carry astronauts and cargo to the International Space Station for NASA.
Musk also said, without offering evidence of how he might know the information, that Trump was 'in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!'
Elon Musk has sharply intensified his conflict with President Trump, effectively threatening to leave NASA astronauts stranded aboard the International Space Station.
The billionaire tech mogul announced on X Thursday that he is decommissioning his company's Dragon spacecraft 'immediately.'
This dramatic step came after Trump posted on Truth Social suggesting he might terminate all US government contracts with Musk's commercial space company, SpaceX.
Donald Trump and Elon Musk's alliance took off like one of SpaceX's rockets. It was supercharged and soared high. And then it blew up.
The spectacular flameout on Thursday peaked as Trump threatened to cut Musk's government contracts and Musk claimed that Trump's administration hasn't released all the records related to sex abuser Jeffrey Epstein because Trump is mentioned in them.
The tech entrepreneur even shared a post on social media calling for Trump's impeachment and skewered the president's signature tariffs, predicting a recession this year.
Question Time has been halted for "breaking news" as US President Donald Trump issued a scathing threat to friend and former special advisor Elon Musk. As Fiona Bruce and a panel of politicians were live in Wales and taking questions from a studio audience, the broadcast was interrupted with a fresh report after Trump threatened to end Musk's government contracts.
Elon Musk announced he would leave his special role heading the Department of Government Efficiency last week, which the billionaire was always set to depart from.
The Tesla chief had fully burrowed his way right into the heart of Donald Trump's inner circle after he pumped millions of dollars into the Republican's campaign. Musk's money bought his way into the US government, several Oval Office apperances and even a private election night watch party with Trump's family last year.
Despite this, the Washington bromance has fallen apart and decended into a petty row on social media. This started when Musk called Trump's tax bill a "disgusting abomination". He said: "Shame on those who voted for it: you know you did wrong. You know it."
The bill would curtail subsidies that benefit Tesla, Musk's electric automaker.
Trump today, in the Oval Office, said he was "very disappointed" in Elon and claimed the businessman "misses the place". The President said: "I've helped Elon a lot."
The President then threatened to take billions of dollars away from Musk's companies saying he could "terminate Elon's Governmental Subsidies and Contracts". Trump added: "Elon was "wearing thin," I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!"
Since then, Musk hit back at Trump with an unverified "bomb" claim about the President and the Epstein files.
Trump responded to the tech boss and said: "I don't mind Elon turning against me, but he should have done so months ago."
Last year, he poured hundreds of millions of dollars into Trump's campaign and used his platform to tilt the digital scales back in the then former president's favour. He was repaid, in his mind, with promises and access to the corridors of government. Those doors have now been slammed shut.
In a sense, the Epstein claim is Musk's final scorched-earth strategy. And in Trump, he's found the perfect foil: a man whose documented past with the late Wall Street financier is impossible to ignore. Let's not forget, Trump wasn't just an acquaintance of Prince Andrew's pal Epstein - they were tight.
'Terrific guy,' Trump once said of him in New York Magazine in 2002. 'He likes beautiful women… many of them on the younger side.'
The pair partied together in Palm Beach. Epstein was a frequent guest at Mar-a-Lago. Photos, videos, flight logs - the connections are not just alleged, they're archived.
Trump now claims he 'banned' Epstein from his clubs in the early 2000s and insists they weren't close. But the record says otherwise - and Musk knows it.
There is no suggestion Trump knew of any crimes or participated in any criminal behaviour.
The explosive end of Washington's biggest bromance has been more than just petty words thrown across social media.
Donald Trump has threatened to cut Elon Musk's contracts and government subsidies for the billionaire's companies. After the Tesla boss called Trump's tax bill a "disgusting abomination", the US President put the pressure on Musk by suggesting he could take billions of dollars away from the bussinessman.
Trump, on Truth Social, said: "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was always surprised that Biden didn't do it!"
'I'm very disappointed in Elon. I've helped Elon a lot,' Donald Trump said in the Oval Office today as Musk continued criticizing the 'big beautiful bill.'
Trump said Musk 'misses the place' since he left his position in the administration spearheading the Department of Government of Efficiency.
He also said Musk was upset that electric vehicle incentives were on the chopping block in Republican legislation that's currently being debated in the Senate. Musk runs Tesla, an electric automaker.
Another point of contention was Musk's promotion of Jared Isaacman to run NASA. 'I didn't think it was appropriate,' Trump said, and he said Isaacman was 'totally a Democrat.'
Former Donald Trump adviser Steve Bannon, who has been one of Musk's most vocal critics for months, said he was advising the president to cancel all of Musk's government contracts and launch several investigations into the world's richest man.
'They should initiate a formal investigation of his immigration status because I am of the strong belief that he is an illegal alien, and he should be deported from the country immediately,' he said.
It comes with Trump and Musk engaged in a war of words which was brewing over the past few days with Musk criticising the US president's "big beautiful bill".
And among the angry exchanges today, Trump wrote: "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was always surprised that Biden didn't do it!"
A spectacular blow-up began after Trump first broached the topic in a White House meeting with Germany's new leader.
Trump told reporters he was 'very disappointed in Musk' and Musk responded on social media in real time.
Then the US president ratcheted up the stakes when he turned to his own social media network, Truth Social, and threatened to use the government to hurt Musk's bottom line with his internet company Starlink and rocket company SpaceX.
'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts,' Trump wrote on his social media network. 'I was always surprised that Biden didn't do it!'
'This just gets better and better,' Musk quickly replied on X. 'Go ahead, make my day.' The deepening rift unfurled much like their relationship started — rapidly, intensely and very publicly.
Musk later offered a stinging insult to a president sensitive about his standing among voters: 'Without me, Trump would have lost the election,' Musk retorted. 'Such ingratitude,' Musk said in a follow-up post.
While the spat reached a new depth when Musk wrote on X: "Time to drop the really big bomb" before claiming that Donald Trump "is in the Epstein files". There is no suggestion Trump knew of any crimes or participated in any criminal behaviour.
Like thunder follows lightning, Elon Musk's spectacular public fall-out tonight with Donald Trump was as predictable as night follows day.
The bromance was never built to last. A billionaire with delusions of being America's saviour, and a career reality-TV president with a steel spine for betrayal - the only surprise is that it took this long to implode. Tonight, the dam burst.
'Time to drop the really big bomb: @realDonaldTrump is in the Epstein files,' Musk declared on X, the platform he owns. 'That is the real reason they have not been made public. Have a nice day, DJT!'
Let that sink in. The world's richest man, once known as Trump's 'First Buddy', just accused the sitting US president of being named in classified government files related to Jeffrey Epstein, the convicted sex offender whose name is synonymous with global elite scandal. No cryptic memes. No dog whistles. Just a nuclear accusation, live on the platform Musk controls.
And it didn't come out of nowhere. This bomb was wrapped in a detonator: Trump's £960 billion trillion spending 'big, beautiful' spending bill, which gutted electric vehicle tax credits and wiped nearly £29.5 billion off Tesla's value in a single day.
Musk's flagship company has now hit the skids. The man who once boasted of 'saving Western civilisation' by putting Trump back on Twitter now finds himself politically exiled and financially wounded by the very man he helped re-elect.
Of course, this was never just about policy. This is about ego, power, and two men who can't stand being second to anyone. Musk had reason to believe he was a kingmaker.
Elon Musk has kicked off on X with a tirade of anti-Trump tweets and reactions following their bitter fallout.
The Tesla CEO responded to a post where another X user said: "President vs Elon. Who wins? My money's on Elon. Trump should be impeached and JD Vance should replace him."
Musk responded and said: "Yes."
Donald Trump has been one of many famous names to appear on the files about disgraced financier Jeffrey Epstein. The current President was named as an associate on documents, that were unsealed last year.
Other names included famous celebrities like Leonardo DiCaprio and Michael Jackson. Some other big names were Prince Andrew and Bill Clinton. Prince Andrew has strenuously denied all allegations.
Read the full list here.
The US President has posted after the Tesla boss dopped a huge claim about him.
The Republican appeared to ignore that post and hit back out at Musk's tax bill disapproval.
Trump said: "I don't mind Elon turning against me, be he should have done so months ago. This is one of the Greatest Bills ever presnted to Congress.
"It's a Record Cut in Expenses, $1.6 Trillion Dollars, and the Biggest Tax Cut ever given. If this Bill doesn't pass, there will be a 68% Tax Increase, and things far worse than that.
"I didn't create this mess, I'm just here to FIX IT. This puts our Country on a Path of Greatness. MAKE AMERICA GREAT AGAIN!"
Read the full story here.
The tax bill fallout turned personal when the President lashed out at the former so-called "first buddy" earlier today.
Trump, on Truth Social, wrote: "Elon was "wearing thin," I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!"
The CEO-loving President and the Tesla boss parted ways just a week ago, when Musk stepped away from his special role in the US government.
It was always known that the billioanire's job in Washington would be temporary but rumours of spats between Musk and Trump's top team had echoed through the capital for months.
Just days later, Elon's public disapproval of a new Republican tax bill, where he called it a "disgusting abomination" would ignite the spectacular teen-like clash online.
Elon Musk, on X, wrote: "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!"
Musk then replied to his post and added: "Mark this post for the future. The truth will come out."
Trump was named as an associate of the disgraced financier Jeffrey Epstein, when previously sealed court documents were made public last year. There is no suggestion he knew of any crimes or participated in any criminal behaviour.
The Tesla boss, on X, wrote: "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate."

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The Irish Sun
4 hours ago
- The Irish Sun
What caused Trump & Elon Musk's explosive fallout? – from NASA spat to key role of Don's teen relative, I know the truth
THE richest man in the world going toe-to-toe with the most powerful man on the planet . . . what could possibly go wrong? And has the most outlandish politician in American history finally met his match? Advertisement 7 Elon Musk, left, looks down on Donald Trump during a White House press conference Credit: AP 7 Musk toured the swing states at last year's election telling the world that Trump was the greatest thing since sliced bread Credit: AFP 7 Trump was considering selling his own Tesla, which has spent weeks parked outside the Oval Office Credit: AP From the moment neuro-diverse rocket man Elon Musk backed New York real estate heavy Donald J. Trump to return to I hear it's the galaxy and beyond that has been at the centre of their tensions, but more on that later — as last night Washington was awash with claims Musk's attempts to befriend 'Bankrupting America is not OK – kill the bill' But the powerful pair certainly have fallen out, trading public blows on their social media sites of choice — the very tech platforms that have both made them and could yet see them crash to back down to earth. Asked if they could reconcile yesterday, Trump slammed Musk as 'the man who has lost his mind'. Advertisement In the end, the most famous bromance in political history lasted less than a year, and the fallout risks dragging them both down. Musk claims credit for his $300million in donations swinging the election Trump's way, while the White House says that's fake news and the car salesman is sulking because he's not getting much bang for his buck. The pair clashed publicly over Trump's so-called 'Big Beautiful Bill' — legislation that he says will deliver a slew of campaign promises like banning taxes on tips for millions of American workers. 7 Trump was tiring of Elon's 'ketamine-fuelled' antics Credit: AFP Advertisement 7 Richest man in the world Musk is going toe-to-toe with the most powerful man on the planet Credit: AFP But Musk — appointed to the administration to cut eye-watering federal expenditure — baulked at the increase in government spending tacked on to the law by Congress, branding it an 'abomination'. Most read in The Sun Breaking He irked Trump by urging senators to vote it down, adding it could be 'big or beautiful but it cannot be both'. Musk raged on social media: 'This spending bill contains the largest increase in the debt ceiling in US history! It is the Debt Slavery Bill… Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL.' Advertisement Trump crushes hopes of 'peace talks' call with Musk as he insists Elon has 'lost his mind' after feud went nuclear It's a long cry from when Musk toured the swing states at last year's election telling the world that Trump was the greatest thing since sliced bread and organising well-oiled get-out-the-vote operations. But behind the scenes I'm told Trump was already at the end of his tether with Musk who some sources accuse of 'gurning away' on the campaign trail and in meetings. Brought in to help slash costs through his Department of Government Efficiency, tensions reached a head after the New York Times ran a well-sourced hit piece accusing Musk of enjoying recreational drugs such as ketamine and ecstasy throughout his brief foray into politics. Those claims were not denied when Musk was confronted by Fox News in an Oval Office press conference last week. Advertisement Musk's coterie of love-children and his stated desire to help repopulate the planet with, what his former lovers have claimed, he calls genius offspring have also rubbed Trump up the wrong way. Teetotal Trump wanted rid of him but also wanted to give his big donor a decent goodbye, so lavished praise on him after he departed as special government employee last week. Yet despite all the niceties, the former allies are locked in a Cold War stand-off this weekend. 7 Devout Trump-backer Steve Bannon called for South African-born Musk to be deported Credit: The Mega Agency Advertisement Will they both retreat to their bunkers and realise mutually assured destruction is in neither of their interests, OR will they be unable to help themselves and launch a thermonuclear blow-out that burns them both up? Musk came close to that on Friday night, with his outlandish allegations that the President was sitting on files about billionaire deceased paedo-financier Jeffrey Epstein — because Trump himself is named as a murky connection. White House sources say that is nonsense and were that bombshell evidence to be sitting in a government file somewhere, surely previous Democrat governments would have leaked it by now. Musk ended his online diatribe with calls for Trump to be impeached, adding a menacing suggestion he could back the Democrats. Advertisement It's a mess, but one that was very obviously cooking Harry Cole Yet even some of his closest allies and supporters were left begging any friend possible to strip Musk of access to his own X platform before he caused any more damage. It's a dangerous game for the mercurial billionaire to play — because the President hit back that he was going to suspend US subsidies and government contracts for the entrepreneurs' many, many firms. Musk's electric car firm Tesla shares were down 14 per cent yesterday — the biggest one-day drop since the company went public, wiping $152billion off its value. And that's before the $3billion personal hit to Musk on the back of an evening of lively tweeting. Advertisement In a further snub, Trump was last night considering selling his own Tesla which has spent weeks parked outside the Oval Office, in a move which could spark a wave of similar fire sales across the US amongst his fans. 'Musk is an illegal alien and should be deported' The Tesla Cybertruck gifted to the President's granddaughter Kai is presumably for the chop too. Meanwhile, the row threatens to spark a wider war between various right-wing camps that run Washington, with implications felt in Congress and across the political spectrum. Devout Trump-backer Steve Bannon called for South African-born Musk to be deported from the US, saying yesterday: 'They should initiate a formal investigation of his immigration status because I am of the strong belief that he is an illegal alien and should be deported from the country immediately.' Advertisement 7 Twitter exchanges between the pair Meanwhile, the self-proclaimed autistic automaker said he could launch a new political party — an idea backed by 80 per cent of the millions of respondents to his social media poll yesterday. But this wasn't just a political knife-fight but also a brawl in the casino of capitalism. In short, it's a mess, but one that was very obviously cooking. Musk is a libertarian, free-marketeer who has his sights on the moon and Mars and beyond. Advertisement Trump is the tariff-loving protectionist who believes it's America First and everyone else can fall in line behind that. Prior to SpaceX, they couldn't even transport their own astronauts to the International Space Station and had to rely on outdated Russian rockets Dr Rainer Zitelmann Add to that their tensions on China that Trump sees as an existential threat to the US, while Musk views it as an opportunity to produce his electric cars on the cheap. It's amazing that things took so long to come to a head. And then it came down to space, where Musk obviously has a major financial interest as the boss of SpaceX — the rocket firm hat has all but colonised America's space projects. Advertisement As top economist Dr Rainer Zitelmann puts it: 'Without SpaceX, the US does not currently have much to offer. "Prior to SpaceX, they couldn't even transport their own astronauts to the International Space Station and had to rely on outdated Russian rockets — and paid exorbitant prices to do so. 'SpaceX is responsible for 86 per cent of all US launches.' But things were coming to a head when Trump blocked a Musk ally to take over Nasa last month, infuriating his former 'First Buddy'. Advertisement Moment of maximum danger Insiders say Musk's attempts to take over Nasa were a step too far that left America's future security beholden to a private company run by a wildly unpredictable boss. Sources claimed Musk recently had his high-level security clearances revoked by the White House as tensions mounted, leading to Friday's pyrotechnics. What happens next is a moment of maximum danger for Trump. Brits will be familiar with what happens when a leader and their dangerous right-hand man fall out. Advertisement Boris Johnson found out the hard way that if the snubbed guru bears enough of a grudge, it is fatal. Read more on the Irish Sun The White House will be hoping this weekend that Elon holds less resentment than equally unstable I wonder whether that might be a bit of wishful thinking . . .

The Journal
5 hours ago
- The Journal
Trump says Musk has 'lost his mind' as he considers ditching his Tesla amid public bust-up
DONALD TRUMP HAS declared that Elon Musk has 'lost his mind' amid a spiralling public bust-up that has seen government contracts threatened, conspiracy theories hurled, and even a potential presidential Tesla sale in the works. In a phone interview with ABC News, the US President brushed off suggestions of a reconciliation call with the Tesla and SpaceX boss. 'You mean the man who has lost his mind?' Trump quipped. A White House official later confirmed that no such call is planned, and that Trump is not interested in speaking to his former ally. According to numerous reports, the US President is now considering selling his Tesla – a car he once praised as Musk's 'baby' – in a very public break from the tech billionaire. Musk and Trump pictured in a Model S Tesla vehicle on the South Lawn of the White House. Alamy Stock Photo Alamy Stock Photo Trump and Musk had posed inside the car at a bizarre event in March, when the president turned the White House into a pop-up Tesla showroom after viral protests against Musk's role as head of the cost-cutting Department of Government Efficiency (DOGE). 'Big ugly spending bill' The once-close relationship between the pair imploded this week, just days after Musk exited his position as head of the DOGE . What followed was a dramatic volley of posts and counterclaims across social media platforms. Musk slammed Trump's flagship 'One Big Beautiful Bill' (a major tax and spending package) as a 'big ugly spending bill' that gutted electric vehicle subsidies. The bill, passed by House Republicans in May, removed key EV incentives Musk's companies rely on. Trump responded by claiming he personally asked Musk to step down from his government role, saying he had been 'wearing thin.' Advertisement Musk denied that and escalated further, alleging that Trump 'is in the Epstein files,' a claim swiftly dismissed by the White House as 'baseless.' The Tesla CEO is also now backing calls for the US president to be impeached. The White House said Musk's outrage was nothing more than an 'unfortunate episode' sparked by his disappointment over the EV subsidy cuts. Trump, speaking to reporters, claimed Musk had known the bill's contents 'better than anybody,' and only objected when he saw how it would hit his bottom line. Trump addressed the feud with reporters today. Alamy Stock Photo Alamy Stock Photo Musk fired back: 'False. This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it.' Markets reacted swiftly – Tesla shares plunged 14.3% yesterday, wiping around $150 billion off the company's value. Musk also threatened to decommission SpaceX's Dragon spacecraft, a vital link to the International Space Station, after Trump floated pulling federal contracts. He later reversed course, posting: 'Ok, we won't decommission Dragon.' 'Expiration date' For now, reconciliation looks unlikely. Trump has made clear he's moving on, and Musk, once a key part of his policy team, appears ready to go to war. Trade Advisor Peter Navarro, whom Musk once called 'dumber than a sack of bricks' in an argument over Trump's tariffs, refused to gloat but said the tycoon had an 'expiration date.' 'No, I'm not glad or whatever,' he told reporters. 'People come and go from the White House.' Vice President JD Vance also stuck by Trump amid the blazing row, blasting what he called 'lies' that his boss was 'impulsive or short-tempered', but notably avoided criticising Musk. Additional reporting from AFP Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal


Irish Times
6 hours ago
- Irish Times
‘Nobody on the right or left is gonna buy a Tesla' - the Trump spat threat to Musk's business empire
What began as Elon Musk's embrace of right-wing populism has become a defining – and potentially harmful – chapter in his business career. By endorsing Donald Trump's MAGA movement and far-right parties in Europe, Musk alienated a big portion of his original customer base, eroding Tesla's brand , sales and market share around the globe. Then came this week's rupture: a personal and public break-up with Trump that prompted threats of retaliation from a man with control over the world's most powerful government. By simultaneously burning bridges with both his customers and now the political movement he funded and amplified for months, Musk now faces a rare convergence of threats: collapsing brand loyalty, shaky revenues, and mounting legal and regulatory risk. Tesla's sales are already stumbling under the weight of partisan baggage. SpaceX, long seen as a strategic national asset, is facing new scrutiny as political winds shift. And the green shoots at X – Musk's $44 billion 'free speech' experiment – that were fuelled by Musk's proximity to the White House and the ad dollars that followed, may soon disappear. READ MORE 'Elon isn't functioning to the benefit of his shareholders,' said Ross Gerber, the chief executive officer of Tesla shareholder Gerber Kawasaki, which has been reducing its Tesla holdings over the last few years. Speaking on Bloomberg Television on Thursday while the meltdown was still going on, Gerber said Musk's behaviour is leading to the 'dismantling of the Musk empire in real time.' With enemies on both flanks, Musk finds himself at the centre of a storm fuelled by consumer revolt and political hostility. [ Donald Trump 'not interested' in talking to Elon Musk Opens in new window ] [ Trump-Musk bromance descends into a jaw-dropping feud Opens in new window ] 'Nobody on the right is gonna buy a Tesla, nobody on the left is gonna buy a Tesla. Elon is a man without a country,' said Steve Bannon, an outside adviser to Trump who has long been critical of Musk, in an interview. Bannon says he is 'in continual conversations at the most senior levels' of the Trump administration to push them to revoke Musk's security clearance and use the Defense Production Act to seize SpaceX and Starlink on grounds they are vital to US national security. Even if Trump does not take such extreme measures, there is no shortage of retaliatory options for the White House. The president could try to wield the power of agencies like the US Securities and Exchange Commission, the National Highway Traffic Safety Administration and the Federal Aviation Administration to inflict real harm – or even just incessant regulatory morass – on to all of Musk's businesses and the source of his wealth. In just one day, the Musk-Trump spat shaved $34 billion from his personal net worth, the second-largest loss ever in the history of the Bloomberg Billionaires Index of the 500 wealthiest people on the planet. The only bigger wealth hit: his own wipeout in November 2021. Tesla lost $153 billion of market value on Thursday, with shares reversing course on Friday after Musk began to simmer down. Musk has faced deep stretches of pain before. There are flanks of sceptics who have, over the years, called for his impending demise only to be proven wrong by the world's richest man and his cult following of fans and funders willing to throw ever-growing sums of money at his ambitions. [ Elon Musk has damaged himself and shows no signs of stopping Opens in new window ] Most famously, Tesla flirted with bankruptcy only to reverse course and become the biggest electric vehicle seller in the world. Musk's $44 billion purchase of X was widely panned as the company's debt languished on banks' books, only to see those fortunes reversed after Trump's election. 'Musk has a habit of teetering on the edge of destruction and pulling himself back just in the nick of time,' said Nancy Tengler, whose firm holds 3.5 per cent of its growth portfolio Tesla stock, in a Friday interview on Bloomberg Television. Tengler, chief executive and chief investment officer of Laffer Tengler Investments, said her firm has been adding Tesla shares in recent months but now has a 'full position.' 'He needs to dial down the rhetoric and the drama and get back to the business,' she says, as investors own Tesla stock for growth, not for 'the histrionics.' To pull off a rebound this time around, Musk is going to have to convince people to start buying his electric vehicles at a faster clip and reverse the painful sales slide in the US, Europe and around the world. He is also going to have to attract riders to his new robotaxi service in Austin as the company makes a gigantic bet on artificial intelligence, robotics and self-driving cars. Musk has lobbied lawmakers to help clear a path for driverless vehicles, something Trump initially endorsed. It is now unclear if the Trump-Musk fallout complicates the regulatory environment for autonomous vehicles and potentially slows the path forward for Tesla's robotaxi network. 'The disagreement will not help Tesla demand but could potentially (temporarily) alienate multiple sides of the political spectrum,' said Morgan Stanley analyst Adam Jonas in a research note entitled 'Well That Escalated Quickly...' Jonas said emotions are 'running high' and that he is sticking to his long-term $410 price target on Tesla's share price but is bracing for near-term volatility and is 'prepared for the stock to give up more.' Other tests in the coming weeks may include a $5 billion debt offering of the billionaire's AI company, xAI Corp, as well as funding rounds for xAI and SpaceX. Musk recently closed a $650 million late-stage raise for his neurotechnology company Neuralink from big investors including Sequoia Capital, ARK Investment Management and Founders Fund. From a legal and regulatory perspective, there is even more at stake for Musk if the Trump administration turns on the billionaire and claws back contracts like the president threatened on Thursday. SpaceX, one of the world's most valuable start-ups with a market value of $350 billion, has received more than $22 billion in unclassified contracts from the Defense Department and Nasa since 2000, according to data from Bloomberg Government. It launches critical national security satellites for the Pentagon and the US is depending on the Musk-led company to develop a spacecraft to put American astronauts on the moon in as little as two years. Musk's vow to decommission its all-important Dragon spacecraft, which ferries cargo and people to the International Space Station for the US, sent shock waves throughout the industry. Following through with the threat, which Musk later walked back, would sever a vital part of the US space program. 'It is untenable to have a CEO of a prime defence and aerospace contractor threaten to shut down services the government has contracted with them to perform,' said Lori Garver, a former Nasa deputy administrator under former president Barack Obama. Garver says Nasa needs SpaceX, but that SpaceX's business model also depends, in part, on the US government. 'Elon has already walked back decommissioning Dragon, because they do require now, as a big part of their business plan, government contracts. But they provide a service for those contracts. So it's a symbiotic relationship,' Garver said. On a more day-to-day basis, government agencies could try to inflict pain on Musk's businesses by delaying everything from space launches to satellite service to robotaxi expansion. Investigations into publicly traded Tesla or the finances of his companies could include the SEC, as well as antitrust probes and Federal Trade Commission interest around social media moderation, data use or AI. So far, Musk and Trump may be trying to at least press pause on the public spectacle. White House officials say Trump plans to focus his attention on inflation and the economy rather than speak to Musk, and insinuated without evidence that the billionaire was agitating for a call with the president. (In a pair of posts on his social media platform Friday morning, Trump intensified his push for Federal Reserve Chair Jerome Powell to lower rates.) As for pulling Musk's government contracts, Trump has not yet pursued any steps to follow through with his threats, one of these people said. He is, however, thinking of getting rid of his Tesla. – Bloomberg