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Could Trump’s Moves Put Elon Musk’s Business at Risk?

In a world increasingly shaped by a handful of powerful individuals, the recent clash between former U.S. President Donald Trump and tech billionaire Elon Musk reads like a modern-day political thriller. Just weeks ago, they were publicly praising each other—Trump calling Musk “an incredible patriot,” and Musk expressing affection for Trump “as much as a straight man can love another man.” But now, it seems, the bromance has come to a spectacular end.

This high-profile fallout has sparked a flurry of headlines and speculation. Is this just political theatre, or are there real consequences for America’s space program, tech industry, and political landscape? Let’s unpack what’s going on and why it matters.



A Friendship That Turned Sour


At the center of this political drama is Elon Musk’s recent resignation as a “special government employee” in Trump’s administration. Musk had been working with the Department of Government Efficiency (DOGE), aiming to streamline federal operations.

At a joint press conference on May 30th, the two were all smiles. But just five days later, Trump posted on his social media platform, Truth Social, that Musk “went CRAZY” and was “wearing thin.” He even threatened to “terminate” Musk’s government contracts.

Musk didn’t take this lying down. On X (formerly Twitter), he fired back, claiming Trump’s name appeared in secret government files linked to Jeffrey Epstein. He even agreed with a post suggesting Trump should be impeached and announced he would decommission the Dragon spacecraft—used to transport astronauts to the International Space Station.

For a moment, things looked like they might spiral out of control. But Musk, in typical fashion, cooled off slightly, responding “good advice” to a follower who told him to relax, and walked back the Dragon announcement. Still, the damage was done. The Trump-Musk alliance is fractured—and maybe permanently.


What Sparked the Feud?


According to reports, the tipping point was Trump’s latest legislative effort—his so-called “One Big Beautiful Bill.” Musk was furious that the bill would balloon the federal deficit, undermining the cost-cutting mission of DOGE. He called the legislation a “disgusting abomination.”

He went further on June 5th, warning that Trump’s tariff policies were dragging the U.S. economy toward a recession.

But Trump offered a different story. He claimed Musk was angry because the bill would scrap a federal subsidy for electric vehicles—an Obama-era policy continued under Biden that had heavily benefited Tesla.

Whether Musk’s outrage stems from ideological concerns or business interests, one thing is clear: their friendship couldn’t survive the collision of power, ego, and profit.

Could Trump Really Hurt Musk’s Empire?


The threats from Trump sound serious—but how real are they?

On paper, Trump has leverage. SpaceX, Musk’s rocket company, holds crucial government contracts with NASA and the Department of Defense. These include launching spy satellites and supporting the Pentagon with Starlink, SpaceX’s satellite internet system.

Trump has floated the idea of canceling these contracts. But in reality, doing so would be a logistical nightmare for the U.S. government. SpaceX’s tech is so advanced and deeply integrated that replacing it isn’t a short-term option.

Even if Trump wanted to “punish” Musk, experts say the most dramatic measures—like stripping his U.S. citizenship or nationalizing his companies—are legally far-fetched. Steve Bannon, one of Trump’s former advisers, suggested both. But revoking citizenship would require proving Musk committed fraud, and the Defence Production Act doesn’t allow nationalizing companies unless the country is in a war—and even then, the legal process is complex.

Still, Musk shouldn’t feel too comfortable. The real threat lies not in Trump’s loudest threats but in quieter, bureaucratic pressure. At the start of 2025, Musk and his companies were facing 65 actual or pending investigations from 11 different federal agencies.

These include claims that:

• Tesla exaggerated its self-driving capabilities,

• Neuralink violated animal welfare laws,

• SpaceX skirted legal procedures in rocket launches.

As head of DOGE, Musk had started dismantling or weakening some of the regulatory bodies investigating him. But now that he’s out, those agencies could resume with renewed energy—and political support from Trump.


When Business Meets Autocracy


This whole saga exposes something deeper than a celebrity-style feud. It shows how dangerously blurred the lines have become between business and politics in America.

In 2024, many tech elites—including Musk—rallied behind Trump. They wanted fewer regulations, lower taxes, and freedom to innovate. But in doing so, they may have underestimated the cost.

As Donald Moynihan from the University of Michigan puts it: “There was always the risk that what they were buying instead were the conditions of oligarchy.”

In other words, they weren’t just buying deregulation—they were entering a system where loyalty to the president becomes the price of doing business. Praise Trump, and you can shape policy. Criticize him, and the full machinery of the state might turn against you.

This dynamic isn’t unique to Trump. In other countries, strongman leaders have centralized power and rewarded personal loyalty—think Russia under Putin or Turkey under Erdoğan. While the U.S. still has robust institutions, the emergence of even partial echoes of this model in American politics should raise concerns about the future of democratic accountability.


What History Tells Us


This isn’t the first time a business tycoon went up against a president and lost.

Think of Nicholas Biddle, the powerful head of the Second Bank of the United States in the 1830s. He tried to charm President Andrew Jackson, but when Jackson refused to renew the bank’s charter, Biddle fought back. Jackson crushed him politically, and Biddle died disgraced.

Or William Randolph Hearst, the media mogul who helped make Theodore Roosevelt a war hero. When Hearst turned on him and tried to take his place, Roosevelt called him a “swollen-headed liar.” Hearst’s influence slowly faded.

Even Joseph Kennedy, the powerful businessman and father of JFK, saw his dreams of becoming president end when he clashed with Franklin D. Roosevelt over World War II. History is full of these cautionary tales.


What’s Next for Musk?


For now, Musk seems to be backing away from the brink. He’s walked back some of his most dramatic threats and signaled openness to reconciliation. And Trump, despite his bluster, may realize he needs Musk more than he’d like to admit—especially as SpaceX and Starlink play increasingly vital roles in national security and space exploration.

And let’s not forget Blue Origin. Jeff Bezos' space company could be waiting in the wings, ready to benefit from Musk’s fall from grace. If Trump decides to shift focus away from SpaceX, Blue Origin could swoop in as a patriotic, less controversial alternative.

But whether this feud fizzles out or escalates again, one thing is certain: it has exposed the fragile, personality-driven nature of modern governance and capitalism. When so much power is concentrated in the hands of just a few men—one leading a nation, another building rockets and implanting chips in brains—the consequences of a personal falling-out can be far-reaching.

As voters, consumers, and citizens, we should be watching this story closely. Not because it’s dramatic or entertaining—but because it reveals what’s at stake when private power and public policy collide.

Final Thoughts

The Trump-Musk drama is more than just a billionaire brawl. It’s a lens into how politics and business are reshaping each other in 21st-century America. Whether you're a fan of Musk's innovation or skeptical of Trump's leadership, this clash offers a warning: when personal loyalty becomes more important than public accountability, democracy takes a hit.

Stay tuned. In the age of Elon Musk and Donald Trump, the next twist is never far away.


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