Elon Musk has launched a scathing counterattack against Steve Bannon after the former Trump strategist urged President Trump to seize SpaceX and deport Musk, marking a dramatic escalation in the ongoing feud between Musk and Trump.
At a Glance
- Steve Bannon called for President Trump to seize SpaceX under the Defense Production Act and deport Elon Musk, questioning his citizenship status.
- Elon Musk retaliated by threatening to decommission SpaceX’s Dragon spacecraft, vital for NASA missions, and used derogatory language against Bannon on social media.
- The feud has led to significant financial repercussions, including a $152 billion drop in Tesla’s market capitalization.
- President Trump dismissed Musk’s attempts at reconciliation, stating he has “lost his mind” and expressing no interest in speaking with him.
- The fallout has caused a rift within the MAGA movement, with some celebrating the end of the Trump-Musk alliance.
A Fractured Alliance
The once-strong alliance between Elon Musk and Donald Trump deteriorated after Musk publicly criticized Trump’s proposed legislation known as the “One Big Beautiful Bill,” which Musk claimed would add $2.4 trillion to the deficit. In response, Trump threatened to cancel all federal contracts with Musk’s companies, including SpaceX and Tesla.
Bannon escalated the conflict by calling on Trump to seize SpaceX using the Defense Production Act and to deport Musk, alleging without evidence that Musk is an “illegal alien.” He also urged investigations into Musk’s immigration history, alleged drug use, and his access to classified materials.
Musk’s Retaliation
In retaliation, Musk threatened to decommission SpaceX’s Dragon spacecraft, which NASA relies on for transporting astronauts to the International Space Station. Though he later walked back the threat, the warning sent shockwaves through both political and aerospace circles.
He also launched a tirade against Bannon on X (formerly Twitter), calling him a “fat fascist” and suggesting that he may financially back Democratic candidates in 2028 as a means of undermining Trump’s influence.
Watch a report: Trump Aide Steve Bannon Targets Elon Musk, Calls For Seizing SpaceX.
Political and Financial Fallout
The feud has already wiped $152 billion from Tesla’s market cap, and Musk’s personal wealth has declined by an estimated $33 billion. TrumpCoin, a cryptocurrency promoted by the former president, also took a hit, dropping $100 million in market value after Musk mocked it online.
The split has exposed a deep rift in the MAGA movement, with some Trump loyalists praising the break from Musk’s “globalist libertarianism,” while others worry about the potential impact on key national programs that rely on SpaceX and Tesla technologies.
Uncertain Future
Musk has hinted that he’s open to reconciling with Trump “for the good of the country,” but Trump has brushed him off, saying Musk has “lost his mind” and that he has no interest in speaking to him.
As this high-profile feud continues, the fallout is reshaping power dynamics within both the tech world and the Republican Party—demonstrating how personal rivalries can have global political and economic consequences.
