The unlikely political marriage between Donald Trump and Tesla CEO Musk exploded in a fiery public divorce on Thursday (local time), after Elon publicly warned that the US President’s “aggressive new tariffs could cause a recession in the country by the second half of this year.““The Trump tariffs will cause a recession in the second half of this year,” Musk posted on X, marking a significant departure from his previous support for the president he once supported and counselled.The pair then hurled insults at each other on social media, with Musk accusing Trump, without evidence, of being named in government files related to disgraced financier Jeffrey Epstein.In response, Trump said that he was “very disappointed” during a televised Oval Office address, slamming Musk for criticising his “big, beautiful” spending bill in Congress.“I’m very disappointed in Elon. I’ve helped Elon a lot,” Trump told reporters in the Oval Office while visiting German Chancellor Friedrich Merz observed quietly.“Elon and I had a great relationship. I don’t know if we will anymore,” he added.The 78-year-old president noted during a 10-minute address that merely a week had passed since he hosted a farewell for Musk’s departure from the cost-cutting Department of Government Efficiency (DOGE).Trump subsequently labelled Musk “crazy” and maintained that he had requested the businessman’s departure due to growing frustration.Musk responded immediately on X, asserting that Trump’s 2024 electoral victory wouldn’t have occurred without his support, whilst criticising Trump’s lack of appreciation.The dispute intensified when Musk posted that Trump “is in the Epstein files,” referencing US government documents about Epstein, whose 2019 death in custody sparked widespread speculation.“Have a nice day, DJT!” Musk added.White House Press Secretary Karoline Leavitt told the news agency AFP that Musk’s Epstein-related post “is an unfortunate episode from Elon, who is unhappy with the ‘One Big Beautiful Bill’ because it does not include the policies he wanted.”Musk, who contributed $300 million to Trump’s campaign, independently stated the Republican’s 2024 victory depended on his backing and denounced Trump’s ingratitude. He affirmed support for Trump’s impeachment and criticised Trump’s worldwide tariffs as potentially recession-inducing.The president suggested penalising the “crazy” entrepreneur by threatening his substantial government contracts, including rocket launches and Starlink satellite service usage.“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump posted on Truth Social.Musk in response hit back, saying he would start “decommissioning” SpaceX’s Dragon spacecraft — which is crucial for Nasa missions to the International Space Station.Also read: Tesla stock price crash wipes out $150 bn; investors dump company
Tesla shares plunge 14% wiping out $150 billion
The fallout triggered panic in financial markets, sending Tesla’s stock down over 14% on Thursday and wiping out nearly $150 billion in market value.The drop came just hours after Trump publicly attacked Musk, accusing him of turning against the administration over changes to a key tax and spending bill. This sharp decline erased some of the gains Tesla had made over the past two months, following Musk’s announcement that the company would begin testing its driverless “robotaxi” service in Austin, Texas, this month.After Donald Trump’s election, investors heavily backed Tesla shares, focusing more on politics than the company’s performance. But on Thursday, things changed dramatically in just three hours, revealing the risks of that strategy.Following the November presidential election, investor enthusiasm drove Tesla’s market value up by over $450 billion within weeks. The shares peaked in December, but subsequently declined when Musk’s leadership of a government efficiency committee sparked boycotts and damaged Tesla’s image.
