The once-close relationship between former President Donald Trump and tech billionaire Elon Musk has fractured into an open and volatile feud, shattering what was long seen as a rare alliance between political power and entrepreneurial influence.

The fallout stems from Musk’s vocal opposition to Trump’s sweeping new spending bill, which he has denounced for over a week. The Tesla and SpaceX CEO has not only criticized the legislation in public forums but has reportedly lobbied against its passage behind the scenes.

Trump, reportedly angered by Musk’s stance, lashed out during a meeting with the German chancellor at the Oval Office on Thursday, expressing sharp disappointment. “He went CRAZY,” Trump said afterward, claiming Musk had been asked to step down from his White House advisory role. He also threatened to review federal contracts with Musk’s companies, including those tied to NASA and national defense.

Musk responded with a series of pointed posts on X (formerly Twitter), escalating tensions by suggesting—without providing evidence—that Trump might appear in unreleased documents linked to Jeffrey Epstein, the convicted sex offender whose connections to prominent figures remain under scrutiny.

The unsubstantiated claims drew swift backlash, while Trump fired back by calling Musk “unhinged” and accusing him of disloyalty. The former president highlighted Musk’s previous leadership of the administration’s government efficiency task force, known informally as “Doge”—a nod to Musk’s affinity for cryptocurrency culture.

The dispute sent shockwaves through financial markets. Tesla shares plummeted 14%, erasing billions in market value and pushing the company’s valuation below $1 trillion for the first time in months. Analysts cited investor anxiety over Musk’s deepening political entanglements and the threat of retaliatory government action.

Amid the turmoil, Musk appeared to pull back from one flashpoint, retracting an earlier threat to withdraw a key SpaceX spacecraft used by NASA for crewed missions to the International Space Station—a move that could signal some attempt at de-escalation.

Still, the broader rift appears far from resolved. What began as a high-profile partnership between a populist president and the world’s richest man has now devolved into a bitter and highly visible clash—one that could have lasting implications for U.S. space programs, electric vehicle policy, and the uneasy relationship between Silicon Valley and Washington.