On June 5, the power ties between Washington and Silicon Valley were completely severed-Trump accused Musk of being "crazy" on the "Truth Social" platform and threatened to cancel the government contract between SpaceX and Tesla; Musk responded on the X platform to Trump's "mental disorder", implying that he was involved in the Epstein case, and announced that he would retire the "Dragon" spacecraft that supported the International Space Station...…

What the hell happened?Hawk Insight brings you a piece.

foreshadowing

The relationship between the two had long been foreshadowed.Four months ago, the Trump administration imposed a 214% tariff on China's rare earth permanent magnets, causing the cost of Tesla motors to soar by 37%; the European Union imposed a 104% punitive tariff on Mexican battery modules, further damaging its supply chain.Tesla's net profit plunged 71% in the quarter, sales in Europe halved, and the German market fell by 59.5%.Musk once asked the White House for emergency help, but found that Trump's cronies had shorted relevant assets in advance to make profits, while Tesla's market value evaporated by US$30 billion in three days.This betrayal of interests became a catalyst for the collapse of the alliance.

background

Musk's Department of Government Efficiency (DOGE) is trying to reshape the bureaucracy with technical logic: replacing tariff reviews with AI systems, cutting 40% of IRS inspectors, and integrating star links into government communications.However, these reforms triggered 89 legal lawsuits. The court suspended its last-place elimination system for civil servants, the Ministry of Justice sued it for unauthorized disclosure of assessment data, and the teachers 'union even launched a national strike to protest education outsourcing.DOGE claims that it has improved government efficiency by 180%, but was exposed by an independent audit that the actual effect is less than 27%. The error rate of the AI approval system in processing veterans benefits is as high as 83%.When technological utopia hit the wall of power in Washington, Silicon Valley rules were completely defeated.

Official break up

The rift between the two men has widened since Musk publicly opposed Trump's signature tax and spending bill on Tuesday.The CEO of Tesla and Space Exploration Technologies called the bill a "disgusting and ugly move" that will destroy U.S. finances.

At 10:37 a.m. Washington time, Musk launched his X campaign on Thursday by posting an article on X that forwarded the Christian news satirical website "The Babylon Bee."The website published a "report" about the bill.The headline is: Congress warns: Failure to pass spending bills could delay national destruction.

At 11:20 a.m., the billionaire directly attacked the president, reiterating a 2013 tweet that criticized the Republican Party for raising the debt ceiling."That makes sense," Musk said.

Trump soon met with German Chancellor Friedrich Merz in the Oval Office and began speaking.

At 11:46 a.m. Musk forwarded another letter from Trump in the past, released in 2012, stating that if the U.S. budget is unbalanced, no member of Congress should be re-elected.

At noon, Trump began responding to Musk's criticism."Elon was angry because we accepted the electric vehicle injunction, which, you know, is a lot of money for electric vehicles," he said."They are having trouble with electric vehicles and are asking us to pay billions of dollars in subsidies.You know, Elon knew this from the beginning.”

He went on to say Musk understood the inner workings of the bill.He said he and Musk had a good relationship-but that relationship may be over.

"I am very disappointed in Musk," he said."I have helped Musk a lot.”

During this time, Melz sat quietly aside until the conversation turned to topics such as Ukraine and Russia.

12:11 p.m. Musk stopped criticizing and instead praised the president's decision to cut funding for California's high-speed rail, calling it a wise move.

But eight minutes later Musk seemed to immediately respond to Trump's statement about the electric car injunction: "Whatever you want.The Tesla CEO said he agreed to keep electric vehicle subsidy cuts in the bill, but noted that oil and gas subsidies had not been affected (which was "very unfair!"”）。He also criticized the bill's extensive "political baggage".

After 12:25 pm, similar posts kept appearing.Musk said he had never seen a bill.

At 12:46 p.m. Musk responded to comments from X user Autism Capital about his role in the election, saying that without him, Trump would have lost and the Democrats would have taken control of the House.He added: "How ingratitude.”

At 1:37 p.m. Musk retweeted a post from an X user named Wall Street Mav, who expressed hope the disagreement would not damage the relationship between the billionaire and Trump.

Musk immediately showed a video of Trump touting Tesla in front of the White House."Do you still remember this?Musk pointed to the president and said.

At 2:37 p.m., Trump joined the debate on his "Truth Social" platform.He said he asked the billionaire to leave and Musk was "crazy."

The president immediately issued a huge threat to the company of the world's richest man.He said the easiest way to save money is to cut Musk's government contracts.According to Bloomberg government data, since fiscal 2000, SpaceX and Tesla have earned total revenue of $22.5 billion from federal non-confidential contracts.

2:48 p.m. Musk responded to Trump's post: "This is an obvious lie.It's sad.”

He then forwarded a post implying that terminating the government contract would lead to the dissolution of the International Space Station, with a smiley face."Come on, make me happy……"he said.

At 3:10 p.m. Musk said "it's time to drop a real blockbuster," implying that Trump refused to release documents related to the infamous New York financier Jeffrey Epstein because the president himself was among them.

At 4:09 p.m. Musk then issued his own threat, saying he would retire SpaceX's Dragon spacecraft, which carries cargo and personnel to the International Space Station for the United States.

As the row raged throughout the afternoon, Tesla's share price plummeted and investors panicked.Gerber Kawasaki Inc. Ross Gerber urged someone to take Musk's phone away.

At the close, Tesla shares had fallen 14%, the largest decline since March.