From Allies to Adversaries: The Fallout Begins

Musk and Trump once appeared aligned: in 2024, Musk poured hundreds of millions into Trump’s reelection bid and later served in the brief-lived Department of Government Efficiency (DOGE) under his administration.
The relationship deteriorated rapidly after Musk publicly denounced Trump’s flagship legislation, the so-called “One Big Beautiful Bill,” labeling it an unbridled fiscal disaster. He called the bill a “disgusting abomination,” predicting astronomical debt and economic ruin. (turn0search1 citeturn0search3)

The tensions escalated swiftly: Musk floated impeachment, floated that Trump might be implicated in the Jeffrey Epstein files (though he provided no proof), deleted the posts, and threatened to sabotage key federal programs like the Starlink contract. In response, Trump lashed out, calling Musk “crazy” and warning of “very serious consequences”—including threat to tens of billions in government contracts. (turn0search8 citeturn0search3turn0search26)

The Apology: “They Went Too Far”

On June 11, 2025, after discreet pressure from Vice President J.D. Vance and White House Chief of Staff Susie Wiles, Musk issued a public mea culpa on X:

“I regret some of my posts about President @realDonaldTrump last week. They went too far.”
He did not specify which posts, but the apology coincided with him deleting controversial allegations, including accusations of Trump’s involvement in the Epstein case and calls for impeachment. (turn0search1 citeturn0search7turn0search5)

Sources suggest the apology followed a private phone call between Musk and Trump the previous night. (turn0search11 citeturn0search26)

Trump’s Unexpected Reaction

In a rare display of grace, Trump responded not with threats, but with moderated approval. When asked by the New York Post, he said:

“I thought it was very nice that he did that.”
He added that he held “no hard feelings”—though he also noted he was “a little disappointed.” (turn0search2 citeturn0search4turn0search0)

At a press briefing, White House Press Secretary Karoline Leavitt confirmed the president had read Musk’s apology and “appreciated” it. (turn0search9 citeturn0search11)

 Financial Tide Turns: Markets React

Musk’s quick back-pedal had immediate financial consequences. Tesla stock rebound by about 2–3% in pre-market trading following his apology. Tesla shares had sharply declined—dropping over 10% during the height of the feud—sparked by investor fears of punitive federal action.

Simultaneously, Musk’s personal fortune recovered nearly $190 billion in net worth, estimated to now stand around $411.4 billion. (turn0news19 citeturn0news24)

 But Is the Relationship Salvageable? Experts Are Skeptical

Insiders suggest this apology is unlikely to restore the once-close Musk–Trump bond. According to People magazine, their relationship has devolved into “pure avoidance,” and Trump’s inner circle says: “No one trusts you again after going nuclear.” (turn0news21 citeturn0news21)

Despite Musk’s gesture, the damage to trust and goodwill is deeply rooted in prior vitriol. Sources insist that the showdown—especially introducing Epstein allegations—may have irreversibly fractured their professional rapport. (turn0search26 citeturn0news21

The Policy Flashpoints Behind the Feud

Several flashpoints framed their escalation:

The “Big Beautiful Bill”: Musk’s public condemnation painted himself as an ideological adversary.

Epstein allegations: Musk speculated that Trump had involvement in hidden Jeffrey Epstein files—amplifying tensions dramatically.

Threats to federal contracts and subsidies: Trump threatened to cancel billions in contracts to Musk’s companies, including SpaceX and Tesla. Musk in turn challenged the continuation of these subsidies and questioned future viability. (turn0search26 citeturn0news14turn0news15)

Despite Trump’s reversal later in July—stating publicly that he had “no plans to strip federal subsidies or contracts” and wants American businesses, including Musk’s, to “thrive”—the underlying friction remains visible. (turn0news13 citeturn0news15turn0news13)

 Musk’s Swift Fireback: “Phew”

In a follow-up gesture, Musk responded to Trump’s public reassurance—posted on Truth Social—with a single word on X: “Phew.” His response provoked a mix of interpretation: relief? Sarcasm? Recognition of the political cost? (turn0news18 citeturn0news18)

But Musk publicly doubled down, challenging Trump’s renewed claims about subsidies, insisting that those incentives had ended under the “Big Beautiful Bill,” and stating SpaceX contracts are earned through performance, not political patronage. (turn0news14 citeturn0news17turn0news14)

 Larger Implications: Political Power, Influence, and Markets

This exchange says less about personal animus and more about high-stakes intersections of political power and economic influence:

For Musk: balancing public criticism with strategic restraint—a misstep risks billions in contracts and investor confidence.

For Trump: projecting control and influence, even amid political divergence.

For markets and policymakers: the feud spotlighted how intertwined business magnates and federal policy can become, especially when geopolitical or regulatory threats loom.

Conclusion: An Apology That Didn’t Heal?

Musk’s apology—public, succinct, and well-timed—was enough to temporarily calm political waters and reassure markets. Trump’s “very nice” reaction surprised many who expected retaliation. However, sources close to the former president suggest that the relationship is fundamentally fractured and may remain so indefinitely.

Musk’s financial rebound and Trump’s softened tone may mask deeper political fissures. As markets stabilize and contracts persist, the duo’s alliance may never be fully restored. The apology might have been necessary—to avert immediate fallout—but not sufficient for reconciliation.