the staff of the Ridgewood blog
Washington DC, the high-profile alliance between Tesla CEO Elon Musk and President Donald Trump has officially collapsed, erupting in a public war of words on social media. Once seen as political allies, Musk and Trump are now embroiled in a bitter feud that could reshape the intersection of tech, politics, and the 2024 election cycle.
After months of partnership, including $240 million in political donations from Musk and public endorsements, the Tesla and SpaceX CEO has broken ties with Trump, slamming the president’s signature tax bill and even hinting at the creation of a third political party. In response, Trump threatened to revoke billions in government subsidies and contracts, sending Tesla shares tumbling by as much as 14%.
Why Musk Walked Away
The fallout began last week when Musk resigned from the Department of Government Efficiency, a Trump-created agency credited with $180 billion in “efficiency savings.” Musk soon began criticizing the GOP’s tax bill, which he called a “budget-busting abomination” projected to add $2.4 trillion to the national debt by 2034.
On his X platform (formerly Twitter), Musk said Trump’s tax plan was “fiscally reckless” and accused the president of being “ungrateful” for Musk’s political and financial support. He went as far as suggesting Trump should be impeached for a third time, and referenced the president’s alleged ties to disgraced financier Jeffrey Epstein.
Trump, for his part, fired back on Truth Social, claiming Musk was angry over the pending end of electric vehicle tax credits that could cost Tesla $1.2 billion in losses. “Such ingratitude,” Trump posted. “Without me, Elon Musk would be irrelevant.”
Political and Market Shockwaves
The split sent shockwaves through Washington and Silicon Valley alike. Musk’s financial support and digital reach have been crucial to Trump’s base, particularly in key swing states. His pivot may fracture Trump’s coalition and open the door for new political challengers.
Meanwhile, the feud could have massive implications for government contracts, particularly with SpaceX, which holds the majority of U.S. rocket launch contracts. Trump’s threat to cancel Musk’s deals could slow America’s space program and provide an opportunity for competitors like Jeff Bezos’ Blue Origin.
The Tech Sector’s Uneasy Alliance With Trump
Despite Musk’s dramatic exit, other tech leaders remain aligned with the Trump administration:
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David Sacks, Trump’s adviser on AI and crypto, continues to support the president’s tax bill—even as it clashes with Musk’s criticisms. On the “All-In” podcast, Sacks doubled down on his praise, calling it a “Big Beautiful Bill” and aligning himself with Trump’s economic team.
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Crypto markets are thriving under Trump’s leadership, as shown by the blockbuster IPO of Circle Internet Group. For many, there’s too much at stake to walk away now.
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Marc Andreessen, while a Musk ally, has made major bets on crypto and AI and is unlikely to follow Musk’s lead just yet.
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Meta’s Mark Zuckerberg and Amazon’s Jeff Bezos remain in a complicated dance with the administration. While Zuckerberg’s outreach has not prevented a federal antitrust lawsuit, and Bezos’ Blue Origin might benefit from Trump’s attacks on SpaceX, neither is expected to make any bold moves—yet.
What Happens Next?
Musk’s break from Trump doesn’t necessarily mean a broader rupture between tech and the White House. However, the rift is symbolic of growing tensions between Silicon Valley and political power. As the 2024 election heats up, this feud may influence donor strategies, voter sentiment, and the direction of federal tech policy.
One thing is certain: this very public split is not the end of the story. With Musk teasing a new political party and Trump fighting to solidify his base, the next episode of America’s favorite political-tech soap opera is just around the corner.
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There’s not enough popcorn in the world to watch this. 🍿
Nobody gives a $hit about this.
I think this is all a ruse.
Musk can recover value for Tesla if he distances himself from Trump.
Wink wink.
Trump is playing chess, the Dems are playing checkers.
C’mon. What level of chess is Trump playing, 3D, 4D or 5D? Can you explain it and what he is trying to do? Such BS.
elon says trump is in the epstein files
democrats demand the files to be released
the files are released but trumps not in them
exposes all the pedos
yuup !
It’s obvious.
Blood is in the water
I only tolerated Elon because he supported the president but turns out he was just a fair weather MAGA type. I think ELon thought he could keep lapping up subsidies forever (ie ripping off Americans to prop up his crap cars nobody wants!) How are you going to rip off the guy who is stopping the whole world from ripping us off????? Not so smart there genius.
Trump failed again.
Failed what? Elon was obviously only ever in it for himself and for his companies and as soon as something didn’t go his way he started acting like a little girl!!! Trump is in the Epstein files? Nothingburger! Everyone knows that, that’s not nuclear level gotcha he thinks it is. Anyone who had any association with Epstein is in files it doesn’t mean anything. Its just a childish smear. Trump was half right when he said Elon was 50% little boy 50% genius.
This is all a carefully manufactured fight by Elon. He didn’t realize the blowback from crazy leftists when he joined the Trump team. He has been under intense pressure from Tesla shareholders as well as becoming one of the most hated men in the world. He is simply doing this now to fix all that and particularly not to become another Luigi style victim.
I support Elon regarding the Big, Beautiful Bill (idiotic name in my opinion) but I don’t support his outburst. He seems to be close to a mental breakdown and I have a feeling he badly regrets mixing up with Trump. What seems to have further the debacle is Trump’s firing of the new head of NASA who is Elon’s friend. On the other hand Elon was a big factor in Trump’s comprehensible win and now with the NASA debacle and the EV subsidies he stands to lose a lot. It’s a shame it came down to this but they both can hurt each other and most of all America.
Big Beautiful Bill or Build Back Better?
You nailed it…