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Trump and Musk’s Feud Ignites Space, Politics and Markets
The world’s most powerful leader and its wealthiest entrepreneur have declared nuclear war—and the fallout could crater economies, strand astronauts, and realign global alliances. Trump and Musk’s feud escalates beyond petty insults into a collision of egos with unprecedented stakes for America’s space program, political landscape, and financial markets.
The Billion-Dollar Bromance Crashes
Their alliance was always transactional. Musk bankrolled Trump’s 2024 campaign with $277 million, flooded X with MAGA propaganda, and scored a coveted role leading Trump’s “Department of Government Efficiency” (DOGE).
In return, Trump showcased Teslas on the White House lawn and handed Musk Oval Office access. But cracks emerged by March 2025: Musk held unauthorized Pentagon briefings on China policy—a conflict given Tesla’s Shanghai giga-factory.
Trump fumed upon learning via media leaks, while Musk bristled when Trump canceled his ally Jared Isaacman’s NASA nomination over Democratic donations. The rupture point? Trump’s “One Big Beautiful Bill,” which Musk decried as a “disgusting abomination” for adding $2.5 trillion to the deficit and slashing EV tax credits.
SpaceX in the Crosshairs
SpaceX threats became Trump’s ultimate leverage. On Truth Social, he vowed terminating Musk’s government contracts would save “Billions and Billions”.
The stakes are stratospheric: NASA depends entirely on SpaceX’s Dragon capsule for ISS missions and moon landings. SpaceX holds $22 billion in federal contracts, including a $1 billion deal to deorbit the ISS by 2030. Musk initially retaliated by tweeting SpaceX would “immediately decommission Dragon,” risking the station’s future—then backtracked hours later.
Analysts warn contract cancellations could paralyze U.S. space dominance, while Europe’s ArianeGroup and Russia’s Roscosmos quietly court Musk’s jittery clients.
Political Earthquake
The political fallout is seismic. Musk polled X users about launching a new party—5.6 million voted, 80% approved—threatening to siphon Trump’s base. He endorsed impeaching Trump, agreeing a post should replace him with VP JD Vance. MAGA loyalists fired back: Steve Bannon demanded Musk’s deportation and SpaceX’s nationalization.
Democrats, meanwhile, relish the schism but reject embracing Musk. “He gave a Nazi-style salute at Trump’s inauguration,” one lawmaker scoffed, referencing DOGE cuts that slashed aid to developing nations. In Kenya, politicians debate emulating Musk’s anti-establishment tactics ahead of 2027 elections, while EU regulators brace for U.S. policy chaos.
Global Economic Shockwaves
Markets reeled as economic turmoil spread. Tesla’s stock plummeted 14% in a day, erasing $138 billion in value and vaporizing $34 billion of Musk’s wealth. Trump’s tariffs—dubbed “Liberation Day” policies—drew Musk’s recession warning: “They will cause a downturn in the second half of this year”. Auto workers in Germany and Japan face layoffs as Tesla slows expansion, while African lithium miners fear slumping EV demand. For investors, the feud exposes deeper fragility: Tesla’s valuation relied on Musk’s White House clout, masking “sales down across the board,” notes analyst Thomas Monteiro.
The Epstein Gambit
With norms shattered, Musk detonated his “really big bomb”: alleging Trump is “in the Epstein files” and blocking their release. Trump privately blamed Musk’s “crazy” behavior on drug use, referencing the billionaire’s black eye during their Oval Office farewell. These mutually assured destruction tactics—Epstein links for SpaceX contracts—reveal both men’s desperation. As Representative Jamie Raskin noted: “Both are telling the truth about the other now. It’s a happy moment for America”.
The World Watches—and Waits
Trump and Musk’s feud escalates beyond a billionaire’s tantrum or a president’s pique. It’s a stress test for democracy: one man controls nuclear codes, the other the world’s communications infrastructure. Markets from Nairobi to London are pricing in volatility, while SpaceX’s astronauts work under a sword of Damocles. As Kissinger quipped of Iran-Iraq: “It’s a pity they can’t both lose”. For now, the globe holds its breath.
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