Washington: Former U.S. President Donald Trump has publicly lashed out at Elon Musk, saying the billionaire entrepreneur has "lost his mind" as tensions between the two continue to mount. Despite their once-close alliance, the relationship between the former president and the SpaceX CEO has rapidly deteriorated over policy clashes and explosive allegations.

The latest flashpoint in the feud came after Musk suggested without evidence that Trump's name may appear in unreleased files related to the late sex offender Jeffrey Epstein. On Thursday, Musk teased a “big bombshell” regarding the former president, which he later walked back by deleting his posts by Saturday morning.

Trump dismissed the allegations, saying he's focused on global diplomacy, not Musk. “Honestly, I’ve been busy talking to China, Russia, Iran. I’m not thinking about Elon Musk,” he told reporters aboard Air Force One, adding that Musk was “a man who has lost his mind.”

The White House confirmed that Trump has abandoned any effort to reconcile with Musk, especially after the Tesla CEO criticized Trump’s spending bill, calling it “disgusting” and warning that it would balloon the deficit and harm low-income Americans.

The dispute has intensified with Trump threatening to cancel federal contracts with Musk’s companies, including those supporting SpaceX’s NASA missions. While Trump said Friday night he was “reviewing” the contracts, he added, “We’ll only move forward if it’s right for the country.”

In a rare move to de-escalate, Musk on Friday backed off a threat to halt the Dragon spacecraft program, essential to ferry NASA astronauts to the International Space Station.

The fallout has raised concerns in Washington, as the conflict between two of the world's most influential figures risks spilling over into politics, space exploration, and tech markets. Tesla stock has already taken a hit, and insiders warn that this once-powerful alliance may be irreparably broken.