In an escalating war of words and power, former President Donald Trump and tech mogul Elon Musk are locked in a dramatic political and business feud that’s grabbing headlines and shaking up Wall Street. The fallout? Billions of dollars in potential losses, threats of political retaliation, and whispers of a brand-new political party.
The Flashpoint: Subsidies and Power
It all began when Trump publicly announced he would review and potentially cut federal subsidies to Tesla and SpaceX, two of Musk’s crown jewels. Trump slammed Musk, warning he could “go back to South Africa” if he didn’t stop “biting the hand that feeds him.” The former president has also hinted at terminating over $22 billion in SpaceX contracts, raising eyebrows across the defense and aerospace sectors.
Musk’s Counterstrike
Musk did not take the threat lightly.
He responded by calling Trump’s policies “insane and destructive” and accused the former president of “turning the GOP into a pork-barrel sideshow.” Going even further, Musk floated the idea of forming a new political party, separate from the Republicans, and bankrolling primary challengers to Trump-aligned candidates in 2026.
“It’s the Porky Pig Party now,” Musk said on X. “Time for something new.”
Market Fallout
Wall Street reacted swiftly. Tesla shares fell more than 7% following the public spat. Analysts fear that losing government contracts and incentives could gut Tesla’s EV advantage in the U.S. Meanwhile, shareholders are worried about how this political distraction will affect SpaceX’s launch timeline and government relations.
What This Means Politically
This isn’t just about business—it’s a power struggle between two titans who once supported each other.
- In 2020: Musk served on Trump’s economic council.
- In 2024: Musk donated hundreds of millions to conservative PACs.
But now, their alliance is in ruins. If Musk goes forward with his third-party ambitions, it could splinter the right-wing vote in 2028 and threaten Trump’s chances of reclaiming the presidency.
🇺🇸 Bigger Picture: The State of U.S. Capitalism
This feud underlines deeper questions about the relationship between tech billionaires and government:
- Should one president control billions in subsidies?
- Can a CEO openly challenge a former president without economic retaliation?
- And what does it say about democracy when deportation is used as a political threat?
Final Word
Whether it fizzles out or explodes, this Trump-Musk feud is no ordinary Twitter spat. It’s a clash of money, power, and influence that could redefine both American politics and the global tech landscape.
Stay tuned—this battle is far from over.