Following a public clash with former United States President Donald Trump, tech billionaire Elon Musk launched a provocative poll on his social media platform X on June 5, asking whether a new political party should be formed in the United States. The response was overwhelming — 80.4% voted “Yes.”
Soon after the poll concluded, Musk posted again, this time referencing “The American Party”, suggesting this could be the name of a potential political movement. While speculation mounts, Musk has yet to make any official announcement.
Russia Offers Political Asylum
Meanwhile, Russian lawmaker Dmitry Novikov stated that Russia would be willing to offer Musk asylum if needed — much like it did with American whistleblower Edward Snowden. However, he added that Musk is a powerful figure in his own right and may not need such protection unless tensions escalate.
Kremlin Distances Itself
Dmitry Peskov, spokesperson for the Kremlin, dismissed involvement in the controversy, saying, “This is an internal matter of the United States. We trust that the American president will handle it himself.”
This statement followed remarks from Steve Bannon, former Trump adviser, who labeled Musk an “illegal alien” and urged the government to deport him. Bannon also suggested the government should nationalize SpaceX.
The Fallout: Heated Exchange and Political Threats
Tensions peaked Thursday night when Musk and Trump engaged in a fierce public dispute. Musk reportedly spoke of removing Trump from the presidency, asserting that Trump cannot win the election without his support. He also criticized Trump’s tax bill — nicknamed the “Big Beautiful Bill” — for harming the electric vehicle industry and said Vice President J.D. Vance should take over.
Trump fired back, accusing Musk of betrayal and threatening to cut off government contracts and subsidies to his companies. He also labeled Musk “unhinged.”
What Sparked the Rift?
The feud appears to have been triggered by Trump’s controversial “Big Beautiful Bill,” a tax reform measure that slashed subsidies for electric vehicles and renewable energy while offering benefits to the oil and gas sectors. Musk initially remained silent but later condemned the bill as “destructive” once the Trump administration began heavily promoting it.
Shortly after, the White House paused the nomination of Jared Isaacman — Musk’s preferred candidate as head of NASA. OpenAI later won a major AI infrastructure contract in the United Arab Emirates that Musk’s xAI reportedly lost.
On May 28, Musk resigned as the head of DOGE just two days before his term ended, further signaling the collapse of their relationship.
How Much Did Musk Lose?
Musk’s feud with Trump has had massive financial consequences. On June 5, Tesla shares plunged 14%, wiping out $34 billion from Musk’s net worth — marking the largest single-day loss in 2025 so far. According to Bloomberg, Musk has lost $64.1 billion in net worth since the start of the year.
Investor concerns include not only the risk to EV subsidies but also fears that SpaceX, Neuralink, and other Musk-led ventures could face increased scrutiny or cancellation of federal contracts.
However, Musk’s overall fortune has surged in the long term. From $264 billion on November 5, 2024 (the U.S. election day) to $334 billion by June 5, 2025, his wealth increased by $170 billion in just 45 days following Trump’s victory. Musk reportedly spent $277 million supporting Trump’s campaign — a relationship that now appears irreparably damaged.
Could the Feud Deepen? Mutual Threats Loom
If the conflict continues, both figures have significant tools to damage each other.
How Musk Could Hit Back
- Redirect His Wealth: Musk still owes Trump a final $100 million campaign installment, which he could withhold or redirect to anti-Trump initiatives.
- Leverage Insider Knowledge: Musk claims to have internal Trump administration intel and hinted at the suppression of Jeffrey Epstein-related documents.
- Threaten Operations: He suggested deactivating SpaceX’s Dragon capsule, which services the International Space Station — though he later walked back the threat.
How Trump Could Retaliate
- Cancel Government Contracts: Trump suggested pulling all federal contracts from Musk’s companies, citing $3 billion in expected deals for 2025 alone.
- Remove EV Tax Credits: Ending the $7,500 electric vehicle tax credit could severely hurt Tesla — potentially costing $1.2 billion annually.
- Regulatory Crackdown: Agencies like the FCC, FDA, and EPA could investigate SpaceX, Neuralink, and Starlink operations.
- Revoke Security Clearance: Without federal clearance, Musk would be unable to lead key NASA or defense projects.
- Use Executive Powers: Trump could shut down Musk-supported initiatives like the Department of Government Efficiency (DoGE) and politicize his dual citizenship or prior drug use.
Once close allies, Elon Musk and Donald Trump are now embroiled in a high-stakes political and business battle that could reshape both the tech landscape and the 2024 presidential race. If this conflict escalates, it could have historic implications for the future of American politics, space exploration, and innovation.