The Musk-Trump Feud: From Alliance to Animosity, a New Party, and What Lies Ahead

The Spark: A Falling Out Over Policy

The once-unlikely alliance between Elon Musk, the tech titan behind Tesla and SpaceX, and President Donald Trump, the polarizing political figure, was a cornerstone of the 2024 U.S. presidential campaign. Musk’s financial muscle—pouring nearly $300 million into Trump’s re-election through America PAC—helped secure a Republican victory. Their partnership peaked with Musk’s appointment as co-leader of the Department of Government Efficiency (DOGE), a Trump administration initiative aimed at slashing federal spending. However, by June 2025, this “bromance” had imploded into a public feud, driven by deep policy disagreements.

The catalyst was Trump’s “One Big Beautiful Bill,” a sweeping tax-cut and spending package that Musk denounced as a “disgusting abomination.” The bill, which passed the House in June 2025 and the Senate in July, proposed significant rollbacks of Biden-era green energy subsidies, directly threatening Tesla’s business model. Musk, a vocal critic of government spending despite his companies’ reliance on billions in federal contracts, argued the bill would balloon the federal deficit. His posts on X, where he owns the platform, escalated from policy critiques to personal attacks, including a now-deleted call for Trump’s impeachment and an unsubstantiated claim linking Trump to Jeffrey Epstein’s files.

Trump retaliated with equal venom, threatening to cut Musk’s government subsidies and contracts, which include $38 billion in support for Tesla, SpaceX, and other ventures. On June 5, 2025, Trump posted on Truth Social, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.” The feud, playing out across social media, saw Musk accuse Trump of ingratitude, claiming, “Without me, Trump would have lost the election.” Trump, in turn, called Musk a “big-time drug addict” in private calls, referencing Musk’s acknowledged ketamine use for depression.

The America Party: Musk’s Political Gambit

Frustrated with what he called the “Democrat-Republican uniparty,” Musk proposed forming a new political party, the “America Party,” to represent the “80% in the middle.” On July 5, 2025, Musk announced its creation on X, following a poll where 80% of nearly two million respondents supported a centrist alternative. He vowed to focus on fiscal responsibility, targeting a few key Senate and House seats to influence contentious legislation. However, Musk’s vision faces significant hurdles.

Creating a national political party is a logistical nightmare, with state laws heavily favoring the two-party system. Experts estimate it could take years and substantial legal battles to secure ballot access nationwide, making a 2026 midterm debut unlikely. Musk’s polarizing persona—marked by his rightward shift and controversial stances on immigration and free speech—also complicates his appeal as a centrist leader. A YouGov poll in July 2025 showed Musk’s net favorability among Republicans dropping 20 points, with only 40% of respondents in a Quantus Insights poll supporting his third-party idea.

Despite these challenges, Musk’s wealth and X platform give him a unique edge. His financial backing could disrupt targeted races, as seen in his support for Rep. Thomas Massie against Trump-aligned opponents. However, his threat to withhold $100 million in promised donations to Trump-affiliated groups risks alienating GOP allies, while Democrats remain wary of embracing him due to his recent conservative leanings.

Predicted Outcome: A Fragile Truce or Lasting Rift?

The Musk-Trump feud is unlikely to sustain its current intensity, given their mutual dependence. Musk’s businesses, particularly SpaceX, rely heavily on government contracts—SpaceX’s Dragon spacecraft is NASA’s sole means of transporting astronauts to the International Space Station. A Washington Post analysis estimated that Musk’s companies have received $38 billion in federal support, making Trump’s threats to cut subsidies a significant risk. Conversely, Trump’s Republican Party benefits from Musk’s financial clout and influence over the MAGA base, with polls showing his popularity rivaling Trump’s among some GOP voters.

Signs of de-escalation emerged by June 11, 2025, when Musk expressed regret for some posts, calling them “too far.” Trump, in a New York Post interview, suggested openness to reconciliation, saying, “I think he feels very badly.” Vice President JD Vance and House Speaker Mike Johnson have also urged a resolution, citing the GOP’s need for unity ahead of the 2026 midterms. However, underlying tensions—over tariffs, subsidies, and Musk’s DOGE tenure—persist.

The most likely outcome is a fragile truce, with both men stepping back to protect their interests. Musk may scale back political spending, as he hinted in May 2025, focusing on his businesses while selectively backing candidates via the America Party. Trump, keen to maintain his legislative momentum, may avoid aggressive retaliation to keep Musk’s financial and social media influence in play. However, a lasting rift could see Musk pivot to a more independent political role, leveraging X to amplify his agenda and challenge both parties. This scenario risks GOP losses in 2026 if Musk funds anti-Trump candidates, but his ability to sustain a national party remains uncertain.

Conclusion

The Musk-Trump feud, rooted in policy disputes and personal egos, has reshaped the political landscape, exposing fault lines within the Republican Party and the tech world. Musk’s America Party, while ambitious, faces steep structural and perceptual barriers. As both men navigate their intertwined interests, the coming months will determine whether they reconcile or deepen their divide, with significant implications for tech policy, government spending, and the 2026 midterms. For now, the world watches as two titans recalibrate their power in a rapidly shifting digital and political arena.

Sources: AP News, CNN Business, The Washington Post, Reuters, BBC, CBS News, The New York Times, NBC News, Al Jazeera, The Guardian, POLITICO