The sudden public fallout between former President Donald Trump and tech magnate Elon Musk is sending ripples through the global tech community, forcing industry leaders, investors, and policymakers to reassess their political allegiances.

It began when Musk, publicly criticizing Trump’s “One Big Beautiful Bill” on X, labeled it fiscally reckless — biting the hand that once nurtured his AI and EV ambitions.

Trump responded in kind, warning he might terminate federal contracts and subsidies for Musk’s companies. That verbal volley triggered a media storm and a sharp 14‑percent drop in Tesla’s stock — erasing nearly $152 billion in market value.

Silicon Valley’s reaction has been fractured. Investors and executives are publicly picking sides. While some, like Brad Gerstner and Garry Tan, have expressed support for Musk’s concerns over fiscal responsibility, others are keeping their distance, either out of caution or discomfort.

This split mirrors a broader ideological tension: tech’s once-predominantly progressive alignment is fracturing as conservative voices emerge louder in the Valley.

Politicians and influencers are also chiming in. Conservative strategist Steve Bannon has demanded punitive measures against Musk, urging Trump to act .

Meanwhile, tech-savvy observers like Kara Swisher have warned of “mutually assured destruction” — a warning that both Trump and Musk have the means to inflict substantial damage on each other.

The implications are far-reaching. At stake: hundreds of billions in federal subsidies, government contracts, and even SpaceX’s NASA missions. Removing the “Dragon” spacecraft or canceling EV incentives could shake high-stakes sectors, from clean energy to national security.