The Elon Musk-Donald Trump confrontation, which became public in June 2025, is more than just a personal rift between two powerful figures; it sheds light on the intertwined nature of the political-economic order in the United States and the limits of public-private relations.[1] The reduction of Musk’s tax incentives and Trump’s political-technological response to it triggered not only a polemic between individuals, but also deeper structural debates such as corporate independence, capitalism, democracy and the role of the media.
The incident that sparked the tension was the massive public spending and tax incentives reform package passed by the US House of Representatives on May 22, 2025, dubbed the “One Big Beautiful Bill”.[2] The law cuts green energy incentives and restricts tax benefits favorable to companies like Tesla.[3] Musk called this situation a “disgrace” on the social media platform X and accused the Trump administration of “lack of vision” and “managing the economy with populism”.[4]
These criticisms were perceived as a personal attack by Trump, who soon announced the end of all relations with Musk. Trump indirectly threatened that the government contracts of the companies Musk runs (especially Tesla and SpaceX) could be re-evaluated.[5]
Following these harsh statements, on June 7, 2025, Tesla shares lost 14 percent of their value, and the company’s market capitalization eroded by more than $ 100 billion in one day.[6] Investors began to price in the possibility of the government cutting its support for Tesla, undermining confidence in the company’s future growth. At the same time, Trump’s media company, Trump Media & Technology, also lost value, and even Trump’s cryptocurrency venture, $TRUMP, saw significant volatility amid this conflict.
This clearly demonstrated how the markets perceive the delicate balance between the private sector and the state. In a system based on a free market economy like the US, it has once again been seen how even political statements can affect the fate of huge companies.
Perhaps one of the most striking aspects of the conflict between Trump and Musk is that it was conducted entirely on social media. Musk’s statements on his platform X were followed not only by the US but also by the global media and turned into a political spectacle in itself. On the other hand, Trump also attacked Musk on Truth Social, calling him “disrespectful” and even tried to indirectly link Musk to the Epstein files.[7]
The important point here is that instead of traditional diplomatic or political channels, a communication model that directly addresses the public and manipulates public support is now used. Such individual media wars can be considered as a digitalized version of populism.
Musk’s direct opposition to Donald Trump’s influence on the Republican Party has mobilized different tendencies within the party. Especially young and conservative politicians such as J.D. Vance are seen to be close to Musk. While this situation points to an increase in leadership competition within the party, it has also strengthened the comments that Musk may launch a new political formation that appeals to the center-right. At the same time, the fact that a technology company executive has such an influence on politics has become a subject of public debate again.
On the other hand, Democrats have also turned to a strategy of exploiting this conflict, with some figures presenting Musk’s criticism as “an admission of Trump’s economic incompetence”.[8] However, the distrust of Musk at this point leads to the fact that no one can easily embrace him politically.
This event also brought to the surface the contradiction between classical Weberian bureaucratic rationality and contemporary neoliberal forms of governance. On the one hand, the dependence of the private sector on the state; on the other hand, the attitude of the state towards capital is being questioned again. The fact that figures like Musk have almost become “parallel public actors” reveals how the balance of power has shifted in liberal democracies.
Moreover, such conflicts may lead to a perception that state policies can be determined by personal rivalries. This can undermine institutional trust in the long run.
The incident seems to have calmed down a bit in the short term. Musk’s deletion of some of his tweets, the intervention of investors such as Bill Ackman, and an indirect message of “peace” from the White House have relatively defused the situation. However, this kind of tension could erupt again and have more lasting consequences.
If this conflict evolves into a systematic polarization of technology elites and populist politicians, it will open the doors to a new era not only in the US but also in world politics.
Such individual conflicts can also undermine confidence in the institutional neutrality of the state. If large corporations are so directly affected by political decision-making, the boundaries between economic rationality and political loyalty become blurred. In constitutional regimes like the US, the private sector is expected to be able to act independently of public regulation. However, this tension between Musk and Trump may signal the emergence of an “invisible loyalty clause” in corporate relations with the government. In the long run, this may lead capital owners to prioritize political loyalty over economic success.
The Musk-Trump tension also raises the intersection of “charismatic leadership” and “platform capitalism”. Both Musk and Trump are influential through individual brand and media power rather than traditional institutions. Political agendas, especially those shaped through social media, can push the boundaries of democratic legitimacy. Musk’s campaigns through X show that classical mechanisms of representation can be replaced by “perception management”. This situation reveals the potential for the political sphere to be transformed by technological figures.
The conflict between Musk and Trump is not just a personal polemic, but a structural indicator of the blurring of the boundaries between capital, politics and media in contemporary democracies. Basic principles such as the neutrality of the state, the autonomy of the market and the nature of public discourse are seriously questioned in such conflicts. The transformation of private sector figures into political actors may threaten the institutional balance of representative democracy. In this context, this tension can be read as a preview of the kind of power struggles that may become more frequent in the coming years. The search for systemic reform and institutional balance may open the door to new political theories that draw on such examples.
[1] “How Bitter Trump‑Musk Feud Escalated – And What Happens Next.” BBC News, www.bbc.com/news/articles/c3wd2215q08o, (Accessed Date: 06.15.2025).
[2] “One Big Beautiful Bill Act.” Congress.gov, H.R. 1, 119th Congress, U.S. House, www.congress.gov/bill/119th-congress/house-bill/1, (Accessed Date: 06.15.2025).
[3] Ibid.
[4] “Musk Urges Americans to Tell Lawmakers to ‘Kill the Bill.’” BBC News, www.bbc.com/news/articles/c0j76djzgpvo, (Accessed Date: 06.15.2025).
[5] Bose, Nandita. “Trump Says Musk Relationship Over, Warns of ‘Serious Consequences’ if He Funds Democrats.” Reuters, www.reuters.com/business/autos-transportation/trump-says-musk-will-face-very-serious-consequences-if-he-funds-democratic-2025-06-07/, (Accessed Date: 06.15.2025).
[6] Sriram, Akash, et al. “Trump-Musk Row Slams Tesla Shares, $150 Billion in Market Value Wiped Out.” Reuters, www.reuters.com/business/autos-transportation/tesla-shares-slide-musk-steps-up-criticism-ally-trump-2025-06-05/, (Accessed Date: 06.15.2025).
[7] Bowden, John, and Gustaf Kilander. “Trump-Musk Feud Live Updates: President Threatens Tesla Boss with ‘Serious Consequences’ if He Funds Democrats.” The Independent, www.independent.co.uk/news/world/americas/us-politics/trump-elon-musk-feud-epstein-x-truth-social-democrats-live-updates-b2765886.html, (Accessed Date: 06.15.2025).
[8] Leingang, Rachel. “Trump-Musk Feud Shows What Happens When Unregulated Money Floods Politics.” The Guardian, www.theguardian.com/technology/2025/jun/08/trump-musk-feud-money-politics, (Accessed Date: 06.15.2025).
