Author Michael Wolff says Donald Trump is bragging that he personally leaked a damning New York Times drug story about Elon Musk, a claim that has turbo-charged their feud and rattled investors.
At a Glance
- Trump told confidants he tipped off reporters about Musk’s alleged ketamine use.
- Musk denies the narcotics allegations featured in the May New York Times exposé.
- Author Michael Wolff says the rivalry has reached “blood score” intensity.
- Trump threatened to revoke federal subsidies for Tesla and SpaceX.
- Tesla shares fell more than 5 percent after Trump’s latest remarks.
Plot Claim Ignites Toxic Feud
During a recent podcast appearance, biographer Michael Wolff said Trump now boasts he “dropped a dime” on Musk by feeding the ketamine story to The New York Times, crediting himself for the May scoop that catalogued alleged stimulant and psychedelic use inside the billionaire’s orbit, according to The Daily Beast. Wolff added that Trump has been calling allies to ask whether they think Musk is “crazy,” describing the clash as a personal vendetta.
The allegations—which Musk has dismissed as “complete fiction”—were widely recirculated after The Guardian’s summary of the Times report highlighted claims of daily ketamine injections and a traveling pill box.
Watch a report: Musk Mulls His Own Party as Trump Threatens Deportation.
High Stakes for Power and Money
Wolff argues that Trump’s fury peaked when Musk blasted the president’s so-called “Big Beautiful Bill” and vowed to bankroll primary challengers, a threat that prompted Trump to mock Musk’s birthplace and warn that subsidies could disappear. A separate Politico analysis confirmed that Musk has quietly explored forming an “America Party,” a prospect that could scramble 2026 congressional races.
Markets reacted swiftly: a July 2 investor note cited by Business Insider reported Tesla shares sliding more than five percent after Trump’s subsidy threat, with analyst Ross Gerber calling the feud “a nail in the coffin” for the automaker’s stretched valuation.
What Happens Next
Campaign strategists warn that a full-blown split could fracture Republican messaging and upend donor blocs in a pivotal cycle. Musk’s willingness to channel vast wealth into insurgent campaigns was documented in a recent TechCrunch investigation, which estimated he poured roughly $270 million into Trump’s 2024 run alone—support that now hangs in the balance.
For Musk, the risk extends beyond reputation: threatened subsidies touch everything from electric vehicles to satellite broadband. For Trump, alienating a mega-donor capable of funding opposition tickets could prove politically costly. As both men escalate, insiders caution that the feud may morph from tabloid slugfest into a genuine political rupture that neither can afford to lose.
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