Elon Musk’s tumultuous history of high-profile business breakups continues with his recent public feud with President Donald Trump, highlighting a pattern of alliances turned adversarial.
At a Glance
- Musk and Trump’s alliance ends in a public feud
- Musk’s history includes breakups with OpenAI, Twitter, and California
- Tesla and SpaceX face financial risks amid political fallout
- Musk’s pattern of contentious separations raises concerns
- The feud underscores challenges in Musk’s business relationships
A Pattern of Contentious Separations
Elon Musk’s falling-out with President Donald Trump is just the latest entry in a long line of acrimonious splits. Their alliance, once strong during Trump’s 2024 presidential campaign, unraveled after Musk publicly criticized the administration’s tax reforms, triggering a wave of retaliatory remarks from Trump. The Wall Street Journal detailed how the rift escalated into personal insults and policy threats.
This is not new terrain for Musk. His 2018 departure from OpenAI, which he co-founded, stemmed from internal disputes over the company’s direction. Musk’s subsequent launch of xAI sparked tensions that culminated in a failed $97.4 billion takeover attempt and a cascade of legal maneuvers.
Similarly, Musk’s acquisition of Twitter in 2022—now rebranded as X—was mired in legal fights, abrupt leadership changes, and sweeping platform overhauls. According to Wikipedia’s detailed chronology, the saga alienated advertisers and users alike, with many former allies turning vocal critics.
Musk also famously broke ties with the state of California, moving Tesla’s headquarters to Texas after denouncing what he called burdensome regulations and high taxes. Yet as the Los Angeles Times reported, the breakup was especially jarring given the billions in subsidies his companies had received from California taxpayers.
Financial and Political Repercussions
The fallout from Musk’s Trump feud is already affecting his companies. Following the public spat, Tesla’s market cap dropped by billions, making it one of the biggest corporate losses of 2025. SpaceX, meanwhile, may face heightened scrutiny over its nearly $22 billion in federal contracts. A recent Reuters report noted the company is scaling back its Dragon spacecraft program amid political backlash.
Musk’s pattern of dramatic exits and public disputes has become a liability, raising questions about the long-term stability of his business empire. As regulatory pressures mount and political alliances shift, the cost of these ruptures could extend well beyond bruised egos.
Watch a report: Caught in Trump-Musk Crossfire: Tesla Stock Sinks.
