WASHINGTON — A dramatic falling-out between President Donald Trump and his former political ally Elon Musk has captured national attention, with the two powerful figures exchanging sharp words this week amid reports of a failed backroom confrontation at the Oval Office.
Air Force One Dismissal
Speaking to reporters aboard Air Force One on June 6, Trump downplayed the rift: “Honestly, I’m too busy right now… not thinking about Elon Musk. I just wish him well.” The remarks came after CNN reported White House aides had arranged a reconciliation call between the two men—a claim the administration later denied.
The Oval Office Showdown
Sources reveal the conflict stems from a private confrontation on May 30 when Trump rejected Musk’s recommendation to appoint billionaire Jared Isaacman as NASA administrator. Presented with documents showing Isaacman’s Democratic donations moments before a televised farewell ceremony, Trump reportedly berated Musk after cameras left, reading donation records aloud while declaring: “This isn’t good.”
The Tesla CEO’s visible anxiety during the exchange—complete with a bruised eye he attributed to playing with his toddler—marked a stark contrast to their public show of camaraderie earlier that day. Within hours, the White House formally withdrew Isaacman’s nomination.
Regulatory Repercussions
The feud carries significant business implications. Tesla shares plunged over 14% at one point this week amid Trump’s threats to cancel government contracts with Musk’s companies. “The easiest way to save billions is terminating Musk’s subsidies,” Trump posted on social media, though analysts question whether such actions would materialize given SpaceX’s defense ties.
International Reactions
European officials seized the moment, with EU Commission spokespersons extending warm invitations for Musk to shift investments abroad. Russian figures including Dmitry Medvedev jokingly offered to mediate the dispute—for payment in SpaceX stock—while former space agency chief Dmitry Rogozin openly invited Musk to relocate operations to Russia.
Family Intervention
Musk’s father Errol publicly criticized his son’s most explosive allegation—linking Trump to Jeffrey Epstein’s documents—calling it “a stupid mistake” in media interviews. The elder Musk confirmed sending calming messages to his son during the dispute, predicting eventual reconciliation.
Market Fallout
The controversy compounds existing challenges for Tesla, which has seen its reputation plummet in recent polls alongside declining European sales. Wedbush analyst Dan Ives noted the conflict “does no favors for anyone,” particularly as Tesla faces ongoing NHTSA safety investigations.
As both men retreat to their respective corners—Trump to his New Jersey golf club, Musk to Tesla’s operational crises—the rupture of this once-close alliance leaves Washington and Wall Street calculating the long-term consequences.
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