Billionaire hedge fund manager Bill Ackman and rapper Ye are calling for reconciliation between President Donald Trump and Tesla Inc. TSLA CEO Elon Musk following their explosive public feud over Trump’s tax bill.
What Happened: The Trump-Musk alliance crumbled Thursday after Musk criticized the president’s “Big Beautiful Bill” as a “disgusting abomination” on the social media platform X.
Trump fired back during a White House event, calling Musk’s opposition “Trump Derangement Syndrome” and expressing disappointment in his former ally.
“I’m very disappointed because Elon knew the inner workings of this bill better than almost anybody,” Trump said, specifically citing Musk’s opposition to EV mandate cuts. “Elon and I had a great relationship. I don’t know if we will anymore.”
Musk responded by claiming credit for Trump’s electoral victory, posting: “Without me, Trump would have lost the election, Dems would control the House, and the Republicans would be 51-49 in the Senate. Such ingratitude.”
Ackman quickly intervened, posting on X: “I support @realDonaldTrump and @elonmusk and they should make peace for the benefit of our great country. We are much stronger together than apart.” Musk replied: “You’re not wrong.”
Ye took a more emotional approach, writing: “Broooos please noooooo. We love you both so much,” accompanied by a hugging emoji.
Why It Matters: Tesla shares plunged 14.26% on Thursday, marking the stock’s worst single-day decline and wiping out $152 billion in market capitalization. Musk’s fortune dropped $33.9 billion to $335 billion, though he remains the world’s richest person.
Tesla stock has declined 18.8% year-to-date, with Musk’s political activism creating brand damage and protests at dealerships. The Congressional Budget Office estimates Trump’s spending package could add $2.3 trillion to $5.7 trillion to federal debt by 2034.
The relationship deteriorated after Musk left his Department of Government Efficiency role last week, having previously been a White House fixture who brought his son to the Oval Office. Bond markets have reacted negatively to fiscal concerns, with economists like Nassim Taleb warning that the budget “will bankrupt America.”
Leading economist Peter Schiff praised Musk’s stance, calling him “a man of principle” for opposing Republican spending hypocrisy. The Senate must approve the package before the July 4 recess.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
