Elon Musk is in open conflict with Donald Trump, transforming a Silicon Valley-White House spat into an international news spectacle. As of July 1st, the Musk-Trump feud is dominating headlines and market chatter, with Musk’s public broadsides against the administration’s policies fueling a wider debate over tech power, political influence, and the boundaries of executive authority.
Musk’s latest offensive began as Trump advanced his “big, beautiful bill”—an omnibus tax-and-spending package that critics say will dramatically reshape both federal budgets and corporate America. Musk did not mince words, slamming the bill and calling for the creation of a new political party. According to Reuters, Musk accused the Trump administration of abandoning innovation in favor of political showmanship, urging fellow tech leaders and voters to consider alternatives as “America needs a new party.”
As the dispute escalated, Trump threatened to “take a look” at Musk’s deportation status, prompting widespread ridicule and concern about political retaliation. The Guardian details how Trump also dangled the threat of unleashing DOGE—the Department of Government Efficiency—against Musk, while Fox Business and Sky News covered the market jitters as shares of Tesla and other Musk-led companies wobbled in the wake of the political firefight.
Musk, for his part, used his preferred platform—social media—to escalate. Sky News and The Independent reported Musk’s repeated calls for an “America Party” and his relentless attacks on what he describes as a Washington culture of “spending without accountability.” In parallel, Musk warned that Trump’s willingness to target subsidies for Musk-owned firms—such as Tesla and SpaceX—could have “global economic consequences,” as Al Jazeera notes.
This feud is not just personal, but political. Politico reports that both men are using the spectacle to energize their bases, with Musk’s calls for new parties and tech independence mirroring Trump’s playbook of disruption and threat. NBC News highlights that the brawl is reshaping Republican strategy, as party leaders scramble to determine whether Musk is a useful ally or a dangerous rival.
Meanwhile, investors are watching closely as Tesla stocks tumble and Musk’s rhetoric continues to unsettle markets. Bloomberg describes the feud as a “test case” for how much tech titans can influence national policy—and how far a sitting president is willing to go to punish perceived disloyalty.
With new threats, legal uncertainty, and public sniping on both sides, the Trump-Musk drama has become the day’s defining story—not just for tech and politics, but for the future of American public life. As of July 1st, the only certainty is that the world will be watching the next move in this increasingly unhinged power play.