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After Breaking With Trump, Elon Musk Saw His Fortune Shrink by US$ 34 Billion and Could Lose Up to US$ 3 Billion in Government Contracts.
The relationship between Donald Trump and Elon Musk was, for a time, a powerful alliance. The President of the United States and the most influential billionaire on the planet walked together in strategic decisions that impacted the country’s politics and economy.
However, what seemed to be an unshakeable partnership gave way to an intense public dispute.
And, apparently, Trump got the upper hand.
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Even with Musk trying to ease the situation by deleting some of his more critical posts, Trump showed no interest in reconciliation. On the contrary, he raised the stakes, made direct threats, and demonstrated that he still has control over the political and administrative paths of the government.
A Political Friendship of Convenience
The connection between Elon Musk and Trump bore fruit for both sides. Musk had direct access to the president and was appointed head of the Department of Government Efficiency (DOGE).
Trump, in turn, received financial support from the world’s richest man, which boosted his campaign and image within the business sector.
The DOGE, created by Trump, had the mission to cut government spending. Elon Musk took charge of the project with ambitious promises: he wanted to save up to US$ 2 trillion.
To do this, he started drastic cuts in federal programs, including the Department of Education, USAID, and the Consumer Financial Protection Bureau.
Musk’s actions were aggressive and generated negative reactions. Critics accused the billionaire of concentrating too much power without being elected to anything.
Silent Break Became Public Fight
Over time, Musk’s power within the DOGE diminished. Trump, recognizing the public and political wear of the billionaire’s actions, reduced the department’s competencies. The atmosphere behind the scenes, according to reports, was already tense.
The situation reached its limit after Musk stepped down from leading the DOGE. Despite a formal farewell ceremony at the White House, where Trump thanked him for his services, the differences between the two came to light shortly afterward.
The breaking point was the so-called “Big Beautiful Bill” (OBBB), a bill promoted by Trump that contradicted part of the cuts agenda and interests defended by Musk. The divergence over the bill laid bare the fissures in the relationship.
Days after leaving the government, Musk took to social media to openly criticize the president. Trump’s response came with force: he threatened severe retaliation if Musk supported the Democrats in the 2026 elections.
Institutional Power in Trump’s Hands
While Elon Musk retreated, deleting messages and trying to cool off the atmosphere, Trump doubled down. The former ally was warned about “very serious consequences” and Trump stated he had no “desire” to restore the relationship with the CEO of Tesla and SpaceX.
In this game, Trump used his institutional power. He didn’t just stop at words.
The most direct threat was the possible cancellation of government contracts with Musk’s companies. In 2023, they had received promises of about US$ 3 billion in agreements with 17 federal agencies.
The signal that Trump could carry out his threats had an immediate effect. Musk saw his personal fortune shrink by US$ 34 billion, according to the Bloomberg index. This was the second largest individual loss in the history of the ranking.
Regulatory Pressure and Investigations
Besides the contractual risk, Musk may face a more hostile regulatory environment.
Before Trump’s administration, eleven federal agencies were already investigating companies linked to the billionaire. With the end of the good relationship with the government, the return or intensification of these actions is not ruled out.
The National Highway Traffic Safety Administration, for instance, recently sent a letter to Tesla requesting details about tests with robotaxis. The government also began signaling support for SpaceX’s competitors, seeking alternatives for future contracts.
The pressure did not come just from the government. Investors began to speak out. The president of the New York Comptroller stated that the fight between Musk and Trump was disastrous for Tesla shareholders.
A loss of over US$ 150 million was estimated for the city’s public pension fund in just one day.
DOGE: Failed Promise and Legacy in Ruins
The DOGE was Musk’s bet to demonstrate his efficiency as a public manager. The initial goal of saving US$ 2 trillion was not achieved.
Upon leaving the position, Musk claimed to have managed to cut US$ 180 billion in expenses — a figure well below what was promised.
While Musk faced criticism, Trump capitalized on the weariness. The president managed to distance himself from his partner at the exact moment, avoiding having the negative repercussions fall on his political image.
The weakening of the DOGE was strategic. Reducing Musk’s power and maintaining control of the discourse showed that, even in the face of a billionaire with global influence, Trump maintains leadership in the political and institutional arena.
Musk’s Isolation and the Advance of Rivals
With the break, Musk lost more than contracts. He lost access to the White House, a space of influence and protection. His competitors saw an opportunity in this crisis.
Bill Gates, for instance, visited the White House to try to reverse cuts made by Musk. The rapprochement of other leaders with Trump shows how politics adapts quickly. In the void left by Musk, other entrepreneurs are moving closer.
Tesla also felt the blow. The company experienced a decline in sales and had a 71% reduction in its most recent quarterly profit.
The negative impact of Musk’s actions in government is cited by analysts as a key factor in the company’s poor performance.
Trump, for his part, does not appear to have suffered political losses. On the contrary. By positioning himself as the one who “tamed” Musk, he projected an image of strength and control.
Trump in Control of the Board
The dispute showed that, even with economic power, Musk could not maintain political influence when he ceased to be convenient for Trump. The public machinery of the U.S., still controlled by the president, showed strength.
Musk attempted to found a new party, considered new paths. But all this amid financial losses, image decline, and distancing from allies.
As for Trump, besides maintaining the support of businessmen looking for space in the government, he reinforced his image as a strong and uncompromising leader. The message is clear: those who are on his side may win. Those who challenge him may lose everything.
The Outcome — For Now
The public fight between the two billionaires may still have new chapters. But, at this moment, the advantage is with Trump. He used the government’s tools, institutional strength, and political narrative to his favor.
As Musk retreats, Trump advances. And even if the damages are high for the former ally’s companies, the president seems to have consolidated yet another victory in his direct style of governance.
If Elon Musk was an important piece at the beginning of the term, now he is merely an obstacle overcome in Donald Trump’s political path.
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