Used to get along, now have a big fight. In public, billionaire Elon Musk is quarrel with US President Donald Trump is getting fiercer. The Musk vs Trump fight was full of insults and threats. Trump threatened to terminate the SpaceX contract. Musk did not remain silent.
Conflict Escalation
Quoting kompas.id, before leaving the White House, Elon already disagreed with Trump’s new bill because it could increase US debt. The bill addresses many things, including tax cuts and deportation of illegal immigrants. Musk’s tirade went on for days in his X accout.
The Elon Musk vs Donald Trump quarrel reached its peak on Thursday (5/6/2025). When meeting German Chancellor Friedrich Merz, Trump also admitted that he was disappointed with Musk. On his platform, Truth Social, Trump called Musk “crazy” and threatened to cancel a government contract with Musk worth up to 22 billion US dollars.
Musk fired back. According to him, the Republicans won the 2024 presidential election thanks to him. Musk is Trump’s largest campaign contributor, at around US$300 million.
“Based on the President’s statement about canceling government contracts, SpaceX will immediately begin decommissioning its Dragon spacecraft,” Musk wrote as the owner of SpaceX on X although he soon changed his mind.
However, Elon Musk was later seen responding to a post about Trump’s impeachment. “President vs Elon. Who wins? I bet on Elon. Trump should be impeached and JD Vance should replace him,” wrote Ian Miles Cheong, a Musk supporter and right-wing activist. Elon replied “Yes” to Cheong’s post. However, Republicans are the majority in the US Congress, making impeachment difficult.
Impact of the Quarrel
If Trump retaliates by canceling SpaceX’s contracts with the United States Aeronautics and Space Administration (NASA) and the Pentagon, the progress of the development of the US space program will be hampered.
Under the contract worth about US$5 billion, Dragon is the only spacecraft capable of transporting astronauts to and from the International Space Station. SpaceX is therefore an important element of the US space program.
Observers consider SpaceX to have dominated rocket and satellite communications programs before Musk’s foray into Republican politics last year. This protected SpaceX from the Elon Musk vs Donald Trump fight.
“Fortunately it won’t be catastrophic as SpaceX has grown into a global force that dominates much of the space industry. However, it will undoubtedly result in a significant loss of revenue and contract opportunities,” said Justus Parmar, CEO of Fortuna Investments who is a SpaceX investor.
So far, the Elon Musk vs Donald Trump spat has had more impact on Musk’s other company, Tesla. Tesla shares plummeted by 14.3 percent or lost about USD 150 billion in value on Thursday. This is the biggest Tesla drop in history in a day.
Previously, Musk and Trump formed an unexpected, but powerful political alliance. After becoming a donor to Trump’s campaign, at its peak Musk had an important position in the Department of Government Efficiency (Doge).
Doge was instrumental in the first 100 days of the Trump administration. It closed many agencies and laid off thousands of government employees to downsize.
Reducing Conflict
The BBC noted that it did not take long for speculation to arise that these two figures with strong personalities were at odds. However, every time the issue arose, Elon Musk would appear in the Oval Office, cabinet room, or Air Force One.
When Musk resigned after 130 days on the job, Musk and Trump held an intimate farewell in the Oval Office. Trump gave him the golden key to the White House while saying Musk might return.
Trump could use another way to get back at Musk. Besides the threat of contract cancellation, he could target Musk’s remaining allies at Doge or reopen investigations into Musk’s business under US President Joe Biden.
The Elon Musk vs Donald Trump conflict is an extreme example of how ego battles can have a systemic impact. When personal relationships become the main axis of strategic cooperation, the cracking of relationships can shake the foundation of the organization.
Systems, not People
There are valuable lessons we can learn from this.
First, an organization should be built on a solid system, not rely on the cult of the individual. When one or two figures dominate, personal conflicts between them can trigger costly strategic chaos.
Second, a leader must be able to separate personal opinions from institutional responsibilities. Social media is not a place to show emotions that can damage the company’s image or even defame the nation.
Third, organizational culture needs to have a healthy conflict resolution mechanism. Without it, differences of opinion can turn into public disputes that harm all parties.
Finally, the biggest threat to an organization comes not from outside, but from within-when ego overpowers common sense and organizational structures are too fragile to control it.
The Elon Musk vs Donald Trump spat is a clear example: when an organization relies too much on the relationship of two powerful figures, a split between them can destroy everything that has been built.
