The once-powerful alliance between former President Donald Trump and tech billionaire Elon Musk has publicly disintegrated following a heated exchange over Trump’s controversial tax legislation. The fallout, which played out in real-time on social media, marks a significant shift in one of the most influential partnerships in both politics and the cryptocurrency sphere.
The Breaking Point
On Thursday, Trump announced he was “done” with Musk during a White House press conference, claiming the Tesla CEO had been attacking his tax bill out of personal frustration 1. According to Trump, Musk was primarily upset over the removal of electric vehicle tax credits that had previously benefited Tesla significantly, as well as the administration’s rejection of Musk’s preferred NASA administrator nominee, Jared Isaacman 2.
“Elon is upset because we took the EV mandate, which was a lot of money for electric vehicles,” Trump stated during the press conference 2. “And you know, they’re having a hard time, the electric vehicles, and they want us to pay billions of dollars in subsidy.”
Trump defended his legislation, which he branded as his “One, Big, Beautiful Bill,” while dismissing Musk’s criticism as merely political 2.
Musk’s Fiery Response
The SpaceX founder didn’t take Trump’s comments lightly, responding almost immediately on his social media platform X with a terse “Whatever” 2. He followed this with a series of posts criticizing the bill’s contents.
“Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill,” Musk wrote 2.
Musk directly contradicted Trump’s claim that he had prior knowledge of the EV credit cuts, stating: “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!” 2
In perhaps his most pointed comment, Musk asserted his critical role in Trump’s electoral success: “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.” 2
Financial Implications
The public dispute coincided with a noticeable dip in Tesla’s stock, which dropped approximately 4% on Thursday, partially erasing its 22% rally from May 2. Tesla shares are now down over 20% for the year, significantly below their December peak of $488.54 2.
The NASA Connection
According to Walter Isaacson, Musk’s biographer, another key factor in the deteriorating relationship was the blocking of Musk’s friend Jared Isaacman for the position of NASA administrator by Trump officials 2.
“That, to Musk, was just infuriating,” Isaacson explained. “Because they were going after Jared Isaacman… to get at Musk.” The biographer suggested Musk interpreted this as a personal betrayal and an attempt to limit his influence in the administration 2.
From Ally to Adversary
The breakdown is particularly notable given Musk’s previous status as Trump’s largest campaign donor, having contributed more than $250 million to the 2024 reelection effort 2. Musk had also taken on an advisory position within the administration, co-leading the Department of Government Efficiency (D.O.G.E.)3.
Analysts had previously predicted potential conflicts between the two powerful figures, particularly regarding Trump’s “America First” policies and their potential impact on Musk’s global business interests, especially Tesla’s Shanghai gigafactory 3.
Crypto Market Implications
The cryptocurrency community has been watching this relationship closely, as both Trump and Musk have significantly influenced crypto markets through their statements and policies 3. Their partnership had raised hopes for favorable cryptocurrency regulations, including discussions about a national Bitcoin strategic reserve 2.
Musk has previously engaged with cryptocurrency issues, including making humorous posts about crypto taxation that resonated with the community’s frustrations over IRS rules 1. The current postponement of new crypto tax reporting requirements until January 1, 2026, had been seen as a positive development for crypto investors 1.
As this high-profile relationship continues to evolve—or dissolve—crypto markets will likely respond to the changing dynamics between two of the most influential figures in both technology and politics.
