Key Takeaways

• – A high-stakes public feud erupted in early June 2025, days after Musk left Trump’s advisory role, sparking impeachment chatter and market turbulence.
• – Disagreements over the deficit-driving “Big Beautiful Bill” and rollback of EV mandates were the policy flashpoints at the heart of their split.
• – Tesla shares plunged 14%, wiping out billions in value, while the Bitcoin price and BTC Spot volumes surged as investors sought safe-haven assets.
• – The fallout raises critical questions for the 2026 midterms, the future of SpaceX contracts, and crypto’s evolving role as a hedge via platforms like XT Earn.

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In early June 2025, an unlikely alliance between President Donald Trump and tech magnate Elon Musk spectacularly unraveled. What began as Musk’s exit from the White House’s Department of Government Efficiency quickly escalated into public barbs over federal spending and EV policy, triggering impeachment whispers, a severe Tesla sell-off, and a sharp Bitcoin BTC rally.

This article examines the feud through five lenses, historical context, the June timeline, political shockwaves, business fallout, and crypto market response, to reveal how a clash of personalities and policies can ripple across Washington, Wall Street, and Silicon Valley.

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Table of Contents

Background: From Skepticism to White House “Bromance”

Chronology of the June 2025 Feud

Political Shockwaves & Impeachment Chatter

Business Fallout: Tesla’s Sell-Off and SpaceX at Risk

Crypto Seismic Shift: Why Bitcoin Rallied

Future Outlook: What Comes Next?

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Background: From Skepticism to White House “Bromance”

Image Credit: CNN

Early Interactions (2016–2017)

After Trump’s surprise November 2016 victory, Musk tweeted that the new president “doesn’t seem to have the sort of character that reflects well on the United States.” Nonetheless, in December 2016 Musk accepted a seat on Trump’s business advisory councils, aiming to influence climate and immigration policy.

That alliance ended abruptly in June 2017 when Trump withdrew from the Paris Climate Accord, prompting Musk’s resignation as he deemed the move “not good for America or the world.”

Tensions in Office (2017–2021)

During Trump’s first term, Musk’s engagement was sporadic and often marked by friction. He publicly criticized the administration’s suspension of certain work visas, vital for Tesla’s staffing, and opposed tariffs that threatened Tesla’s overseas manufacturing.

At times, Musk’s comments rippled through crypto markets, briefly impacting BTC/USDT Spot and BTC/USD Coin-M Futures trading as investors weighed his policy views. Some even shifted into Bitcoin Staking or yield products like XT Earn to hedge broader market risk.

Public Spat of 2022

In mid-2022, after acquiring Twitter, Musk restored Trump’s account and called the ban “foolish.” Trump responded by labeling Musk “another bullshit artist,” a claim Musk rebuffed, urging the president to “hang up his hat & sail into the sunset.”

2023–2024 Alliance

In July 2024, following an assassination attempt on Trump, Musk publicly endorsed the president, donating $277 million via Super PACs, hosting live X interviews, and proposing the Department of Government Efficiency (DOGE) initiative, an unlikely “bromance” that set the stage for both cooperation and inevitable fallout.

Image Credit: USA Today

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Chronology of the June 2025 Feud

Late May 2025

After roughly 130 working days as an unpaid “special government employee” heading the Department of Government Efficiency (DOGE), Musk formally departed the White House at the end of May 2025.

His exit was marked by ceremony, Trump presented him with a “key to the White House”, but also hinted at underlying tensions as Musk prepared to return to private life.

Image Credit: Mediaite

June 1–3

Within days, Musk broke his silence, publicly criticizing Trump’s “Big Beautiful Bill”, a sweeping spending package he warned would balloon the deficit, calling it an “abomination” on X.

In turn, Trump threatened to rescind electric-vehicle mandates that benefit Tesla and to reconsider SpaceX’s federal contracts, warning that Musk’s companies could face steep repercussions if he continued to “bash” the administration’s agenda.

June 4–5

The feud went nuclear on June 4 when Musk posted incendiary insinuations about Trump’s name appearing in sealed Jeffrey Epstein files, an unverified claim later deleted from X, provoking a swift denial from the White House and sparking impeachment chatter online.

Trump retaliated on Truth Social, accusing Musk of having “went CRAZY” and even floated renewed calls for Musk’s removal from advisory positions, stoking rumors of impeachment push among pundits and political insiders.

June 6–7

Financial markets reacted violently. On June 6, Tesla shares plunged over 14%, wiping out an estimated $138 billion in market value and knocking roughly $34 billion off Musk’s net worth in a single day.

Simultaneously, the Bitcoin price spiked as investors sought refuge from the equity rout, BTC/USDT spot volumes surged on major exchanges and Bitcoin Spot flows into custodial products jumped, driving BTC/USDT up by nearly 8% over 48 hours.

June 8–11

By June 8, both figures began to dial back the public hostilities. Musk deleted his most incendiary posts, including the Epstein insinuation, and issued a tepid “Likewise” in response to Trump’s well-wishes, while Trump publicly stated he was “not thinking about Elon” and wished him “well” but refused any direct reconciliation call. Despite the temporary calm, no formal dialogue was scheduled, leaving the rift unresolved as of June 11.

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Political Shockwaves & Impeachment Chatter

Image Credit: Radboud Universiteit

Policy Clash as Catalyst

The feud’s spark was Musk’s public condemnation of Trump’s “Big Beautiful Bill,” which he labeled an “abomination” for ballooning the federal deficit, and Trump’s retaliatory threats to rescind Tesla-friendly EV mandates and jeopardize SpaceX contracts.

Impeachment Rumblings

On June 5, Musk went further, openly endorsing calls for Trump’s impeachment on X after insinuating Trump’s involvement in sealed Epstein files (a claim later deleted).

Political commentators on both sides dissected Musk’s move: liberal pundits praised his outspokenness, while conservative voices decried it as a billionaire overstep.

Impeachment chatter, though premature, dominated cable-news panels and talk radio for days.

Party Dynamics

Within the GOP, the split exposed emerging fault lines.

Some establishment insiders privately lamented losing Musk’s financial backing, he contributed an estimated $277 million to Trump-aligned Super PACs in 2024, while hardline MAGA loyalists rallied behind the president, dismissing Musk as another “elites-first” interloper.

Ahead of the 2026 midterms, strategists warn the defection of tech-savvy donors like Musk could force Republicans to court alternative financier coalitions or risk losing support among libertarian-leaning base voters.

Media Framing

News outlets framed the clash as the ultimate “billionaire vs. President” showdown.

The Associated Press and major networks ran recurring visuals of Musk and Trump during happier times juxtaposed with their latest barbs, portraying the saga as a political thriller of egos and power.

Financial channels pointed out that the turbulence even rippled into crypto markets: BTC/USDT Spot trading volumes spiked as risk-averse investors rotated out of equities, and demand for yield products like XT Earn ticked higher.

Meanwhile, debates raged over who held more leverage, Trump with the presidency and federal levers, or Musk with his social-media megaphone and market-moving portfolio.

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Business Fallout: Tesla’s Sell-Off and SpaceX at Risk

Market Impact

The public clash sent shockwaves through financial markets. On June 6, Tesla’s share price plummeted over 14%, erasing roughly $138 billion in market value and costing Elon Musk an estimated $34 billion in personal net worth in a single trading session.

Analysts attributed the sell-off to investor fears that Trump’s threats, combined with Musk’s unpredictable public outbursts, could imperil Tesla’s access to federal incentives and contracts.

Many hedge funds and retail traders liquidated Tesla positions, while alternative assets saw inflows: Bitcoin BTC witnessed a parallel uptick, with the Bitcoin price climbing nearly 8% as market participants sought refuge from equity volatility.

Policy Threats

Trump publicly warned he might cancel or renegotiate federal contracts and subsidies that benefit Musk’s enterprises, explicitly naming SpaceX’s multi-billion-dollar NASA launch agreements and Tesla’s EV tax credits as targets. He even hinted at removing SpaceX from its role in ferrying American astronauts, a move that would force NASA to scramble for backup providers.

Image Credit: Inspired Pencil

Competitive Landscape

Rivals have been quick to sense opportunity. Blue Origin and legacy defense contractors like United Launch Alliance are reportedly ramping up pitches to NASA, positioning themselves as reliable alternatives should SpaceX contracts be curtailed.

Meanwhile, some conservative consumer groups began organizing informal boycotts of Tesla, leveraging the feud to rally support for traditional automakers in MAGA-friendly states. Industry observers note this could chip away at Tesla’s market share in critical regions where political sentiment is strong.

Brand Sentiment

Consumer surveys and social-media sentiment analysis indicate a growing polarization around Tesla’s brand: urban, progressive buyers remained supportive, while a segment of Republican-aligned consumers expressed distrust.

On the institutional side, several pension funds and ESG-focused investors paused new Tesla allocations pending clarity on regulatory risks.

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Crypto Seismic Shift: Why Bitcoin Rallied

Safe-Haven Flows

As Tesla shares cratered on June 6, investors fled to alternative assets, with Bitcoin emerging as a clear beneficiary. Over the two-day span, BTC Spot volumes on major exchanges surged by over 35%, reflecting urgent demand for a non-correlated store of value. Portfolio managers cited political uncertainty and equity volatility as key drivers behind reallocations into crypto.

Correlation Breakdown

Historically, Bitcoin BTC has shown at least partial correlation with risk assets during market panics. However, in early June, this relationship inverted: while the S&P 500 fell more than 2% on June 6, the Bitcoin price jumped nearly 8%, decoupling sharply from traditional equities.

The divergence was even clearer in BTC/USDT trading pairs, which saw higher volatility and volume compared to stocks, underscoring crypto’s emerging role as a hedge amid political turmoil.

On-Chain Indicators

Blockchain data reinforced this narrative. Between June 5–7, new wallet addresses increased by 40%, suggesting both retail and institutional entrants ramping up positions.

Overall network transaction volumes also climbed 25%, driven by large transfers to custodial and self-custody wallets—signs of both speculative interest and strategic accumulation.

Image Credit: Glassnode

Longer-Term Implications

Early June’s events may mark a turning point in how investors view cryptocurrency. If Bitcoin continues to act as a safe-haven during geopolitical or policy upheavals, products like BTC Staking and yield platforms such as XT Earn could see sustained growth, potentially cementing crypto alongside gold and sovereign bonds in diversified portfolios.

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Future Outlook: What Comes Next?

Potential Reconciliation

A thaw could occur if Trump offers policy concessions, such as reinstating select EV incentives, or Musk agrees to temper public criticism in exchange for preserving SpaceX launch deals. Shared interests in U.S. competitiveness and innovation may pave the way for a détente.

Election 2026 Impact

Musk’s deep pockets and tech influence could finance GOP challengers or sway tech-savvy voters via platforms like X, potentially siphoning support from Trump if their rift endures.

Business Strategy Shifts

Tesla may diversify away from federal incentives, accelerating international market expansion to reduce political exposure. SpaceX, meanwhile, could pursue more commercial and international launch contracts to hedge against U.S. policy risk.

Crypto Trends

If Bitcoin BTC continues its safe-haven role, we may see persistent demand in BTC/USDT pairs and growing adoption of yield platforms like XT Earn. Conversely, normalization could follow once market and political volatility subside.

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Conclusion

The Trump–Musk fallout underscores how alliances founded on convenience can unravel when policy and personal interests collide. In this case, disputes over spending, EV mandates, and government contracts fractured a high-profile partnership, triggering market shocks from Tesla’s sell-off to surging BTC price and BTC Spot flows. It highlights the deep interconnection of politics, big tech, and finance, where a tweet can ripple through boardrooms and trading desks alike.

As Trump and Musk recalibrate their strategies, investors should watch policy developments and market indicators, whether XT Earn yield trends or shifts in Bitcoin BTC sentiment, for the next twists in this high-stakes saga.

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FAQs

What triggered the Trump–Musk feud?

The clash began when Musk criticized Trump’s “Big Beautiful Bill” for inflating the deficit, prompting Trump to threaten cuts to EV mandates and SpaceX contracts—a policy spat at the feud’s core.

How did Tesla’s stock respond?

On June 6, Tesla shares plunged over 14%, wiping out roughly $138 billion in market value and costing Musk around $34 billion in personal net worth in a single session.

What policy risks did Trump threaten?

Trump warned he might cancel or renegotiate federal subsidies and NASA launch agreements benefiting Musk’s companies, directly targeting Tesla’s EV tax credits and SpaceX’s astronaut transport deals.

Why did the Bitcoin price rally amid the turmoil?

Investors sought a safe-haven from equity volatility, driving the Bitcoin price up nearly 8% as capital rotated out of stocks and into crypto.

How did BTC/USDT volumes react during the sell-off

BTC/USDT spot volumes surged by over 35% on major exchanges between June 6–7, reflecting a flight to crypto as a non-correlated asset.

What role could XT Earn play going forward?

Yield platforms like XT Earn may see increased inflows if investors continue to seek passive returns in digital assets amid political and market uncertainty.

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Quick Links

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