Elon Musk–Trump feud: Tesla loses $150 bn, Trump threatens subsidy cuts, Musk suggests impeachment

A bitter feud between President Donald Trump and tech billionaire Elon Musk has rocked US politics and financial markets, wiping out more than $150 billion in Tesla’s market value and shaking investor confidence.

The Musk-Trump relationship, once defined by public praise and deep-pocketed support, has now collapsed under the weight of mutual accusations. Trump claimed he asked Musk to leave the White House after the billionaire ‘just went CRAZY!’ in response to a rollback of electric vehicle policies.

“Elon was wearing thin. I took away his EV Mandate that forced people to buy Electric Cars, and he went CRAZY,” Trump posted on Truth Social.

Musk countered the president’s version of events with fiery posts, accusing Trump of passing a massive tax-and-spending bill behind closed doors.

“This bill was never shown to me even once… ditch the MOUNTAIN of DISGUSTING PORK in the bill,” Musk wrote.

After which Elon Musk posted a bombshell on his X platform, claiming:

“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!”

While Trump’s name has appeared in Jeffrey Epstein’s flight logs, no direct evidence of criminal wrongdoing has been established. Notably, the so-called ‘Epstein files’ were released under the Trump administration in February 2025 contradicting the insinuation that they were being suppressed to protect the president.

But the tweet marked a stunning escalation in tensions between the two men, once seen as close political and financial allies.

Minutes later, Musk endorsed a post suggesting Trump should be impeached and replaced by Senator JD Vance. He retweeted it with a simple but powerful “Yes.”

In a retaliatory statement, President Trump hinted at immediate consequences for Musk’s companies:

“The easiest way to save money in our Budget is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”

The threat to cut off SpaceX’s contracts as well as Tesla’s EV tax credits sent tremors through the market.

Amid fallout between Elon Musk and Donald Trump,  Tesla’s stock plummeted 14% on Thursday, its worst single-day performance in history. Over $152 billion in market value was erased, bringing its valuation below $1 trillion for the first time in over a year. Investor anxiety surged over possible federal retribution and the broader impact of the Musk-Trump feud on regulatory policies.

The meltdown caps a volatile few months in which Musk, who once served as head of the now-defunct DOGE (Department of Government Efficiency) under Trump, had been instrumental in cutting bureaucratic waste and saving taxpayer funds.

Before the Trump administration came to power in the 2025 election, Musk had supported Trump’s campaign, following which he now said that Trump wouldn’t have been elected without his backing

Now, that alliance is over and so is the market’s confidence in their cooperation.