The spat between Donald Trump and Elon Musk stems from a complex interplay of political, financial, and personal factors that escalated rapidly after their highly publicized alliance.
By Thursday night (05th June, 2025), Trump had publicly toyed with cutting off government contracts to Musk’s companies, said the billionaire “went CRAZY” and suggested that he is suffering from “Trump derangement syndrome.”
In response, Musk, the world’s richest man, floated starting a new political party, suggested that Trump should be impeached, argued that Trump’s tariffs would trigger a recession and pledged to decommission a valuable piece of space equipment on which the government relies.
He also alleged that Trump’s name appears in documents stemming from a federal investigation into convicted sex-trafficker Jeffrey Epstein, insinuating that Trump was in some way linked to his criminal behavior.
Here are the root causes of their conflict:
⚖️ 1. Policy Divergence on Fiscal Issues.
– Deficit Concerns vs. Legislative Priorities:
Musk vehemently opposed Trump’s “One Big Beautiful Bill” (OBBB), which proposed $3.7 trillion in tax cuts but was projected by the Congressional Budget Office (CBO) to add $2.4–$5 trillion to the national debt over a decade. Musk denounced it as a “disgusting abomination” laden with “pork,” arguing it undermined his Department of Government Efficiency (DOGE) efforts to cut spending.
– EV Subsidy Clash:
Trump claimed Musk’s criticism was driven by the bill’s elimination of electric vehicle (EV) tax credits, which benefit Tesla. Musk denied this, stating he supported cutting EV incentives but demanded removal of unrelated “pork” .
💼 2. Power Struggles and Diminished Influence.
– DOGE’s Limited Impact:
Musk entered the Trump administration vowing to cut $1–$2 trillion in federal spending but achieved only ~$180 billion in savings—far short of his goals. His aggressive tactics (e.g., mass layoffs, agency gutting) were curtailed by Trump in March 2025 after Cabinet complaints, with Trump insisting on a “scalpel, not a hatchet” approach.
– Internal Administration Clashes:
Musk clashed with key Trump allies, including Treasury Secretary Scott Bessent and trade adviser Peter Navarro, who criticized Tesla’s reliance on “cheap foreign parts.” Musk called Navarro “dumber than a sack of bricks” .
– Broken Financial Promises:
Musk reportedly pledged $100 million to Trump’s political operation but never delivered, straining trust.
👑 3. Ego Conflicts and Personal Resentments.
– Credit for Election Victory:
Musk claimed Trump “would have lost” the 2024 election without his $288 million in campaign support and influence, adding, “Such ingratitude“.
– Perceived Sidelining:
After Musk’s 129-day DOGE tenure ended (the maximum allowed for a special government employee), Trump rejected his request to extend his role. Musk viewed Trump’s subsequent withdrawal of Jared Isaacman’s NASA nomination—a Musk ally—as retaliation.
– Public Humiliation:
Trump suggested Musk suffered from “Trump Derangement Syndrome” and missed the “glamour” of the White House, while Musk accused Trump of hypocrisy over past deficit criticisms.
📉 4. Business Interests and Financial Threats:
– Subsidy and Contract Risks:
Trump threatened to terminate billions in government subsidies and contracts for Musk’s companies (e.g., SpaceX, Tesla), which have received ~$38 billion in federal support. Musk briefly retaliated by threatening to decommission SpaceX’s Dragon spacecraft (critical for NASA missions) before backtracking.
– Market Fallout:
Tesla’s stock plunged 14% in a day, wiping out $150 billion in market value, amid fears of regulatory retaliation and Musk’s divided focus.
💥 5. Escalation to Personal Attacks.
– Epstein Allegations:
Musk claimed Trump was “in the Epstein files” to explain their non-release — a baseless accusation the White House called an “unfortunate episode“.
– Calls for Impeachment:
Musk endorsed posts urging Trump’s impeachment and replacement with VP JD Vance.
Key Underlying Dynamics:
| No. | Factor | Trump’s Position | Musk’s Position |
| 1.0 | Fiscal Policy. | Prioritize tax cuts and tariff-driven revenue. | Debt reduction via spending cuts. |
| 2.0 | Influence. | Reject Musk’s “technocratic reform“. | Resentment over waning power. |
| 3.0 | Leadership Style. | Demands loyalty, disparages critics. | Entrepreneurial autonomy, public provocations. |
The feud exemplifies a collision between populist politics (Trump) and technocratic capitalism (Musk), exacerbated by mutual dependencies that soured. Musk’s attempt to position himself as a deficit hawk conflicted with Trump’s debt-expanding legislation, while personal ambitions—Musk’s political aspirations and Trump’s intolerance for dissent—sealed the rift.
Elon Musk’s threat to start a new political party emerges from his public feud with former ally Donald Trump, centered on policy disagreements (e.g., the “One Big Beautiful Bill“) and personal grievances. While his poll on X garnered 81% support (4.1M + votes) for a party representing the “80% in the middle,” competing equally with Democrats and Republicans faces monumental challenges. Here’s a breakdown:
⚖️ 1. Structural and Systemic Barriers:
– Duverger’s Law:
The U.S. electoral system (first-past-the-post) inherently favors two dominant parties. Third parties historically fail (e.g., Ross Perot’s 1992 run scared both parties into “lockdown” mode).
– Ballot Access:
A new party would need to navigate complex, state-specific ballot requirements—a logistical and financial nightmare.
– Spoiler Effect:
In a polarized climate, a centrist party risks splitting votes, benefiting opponents (e.g., Democrats might gain if Musk siphons Republican votes).
💰 2. Musk’s Advantages:
– Resources:
As the world’s richest person, Musk can fund ballot access, candidates, and media campaigns. He spent $288M to elect Trump in 2024.
– Platform Control:
Ownership of X (Twitter) provides direct reach to 200M+ users and viral mobilization tools.
– Anti-Establishment Appeal:
His critique of deficits and “pork-filled” bills resonates with fiscal conservatives and independents.
🧱 3. Critical Obstacles:
– Lack of Cohesive Ideology:
Musk’s positions—libertarian on spending, pro-science/tech, pro-immigration for skilled workers—clash with both Trump’s populism and progressive priorities . Democrats see him as a “chainsaw-wielding villain” for gutting agencies, while Republicans distrust his globalist ventures.
– Polarization:
The “80% in the middle” is a myth; U.S. politics is deeply tribal. Only 7% of voters are true centrists.
– Trump’s Grip:
MAGA loyalty overshadows Musk. Trump retaliated by threatening SpaceX/NASA contracts, exposing Musk’s dependency on government ties.
– Brand Damage:
Tesla’s stock fell 14% during the feud; liberals boycott his products, and conservatives abandon him if Trump attacks.
🗳️ 4. Potential Impact (Short-Term).
– GOP Infighting:
Musk could primary Republicans who backed Trump’s bill, leveraging his funding and platform.
– Debt-Ceiling Leverage:
His opposition may empower Senate fiscal hawks (e.g., Rand Paul), complicating Trump’s bill passage before the August deadline.
– Democratic Opportunism:
Some Democrats (e.g., Ro Khanna) seek dialogue, hoping to split Musk from Republicans.
🔮 5. Long-Term Viability.
– Personality-Driven Flaw:
Musk’s erratic style (e.g., ketamine-fueled tweets, Epstein accusations against Trump) undermines stability.
– Policy Contradictions:
He opposes subsidies but built Tesla on EV credits; he champions austerity while benefiting from government contracts.
– Historical Precedent:
Parties like the Tea Party were absorbed by the GOP. Musk’s “middle party” lacks a policy core beyond deficit hawkishness.
💎 Conclusion: Chances of Equal Footing?
Near-Zero.
While Musk could disrupt the 2026 midterms by primarying Republicans or funding centrist candidates, structural barriers and polarization prevent sustainable parity. His best-case role is as a spoiler or influencer —not a major-party peer. As Anthony Scaramucci noted, third parties “can’t happen” in the U.S. system. For true impact, Musk would need to reform electoral mechanics (e.g., ranked-choice voting), a battle far harder than a Twitter poll.
Read more analysis by Rutashubanyuma Nestory
