2025-06-06T03:49:04Z

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WASHINGTON — In an explosive turn of events on Thursday, President Donald Trump publicly threatened to terminate government contracts with billionaire entrepreneur Elon Musk. This dramatic fallout followed Musk’s suggestion that Trump should face impeachment, transforming their previously amicable relationship into a full-fledged public spat played out across social media.

The conflict ignited after Trump openly criticized Musk during a statement in the Oval Office, which set the stage for a rapid deterioration of their rapport. Within mere hours, the two influential figures—one the leader of the United States and the other the world’s wealthiest individual—exchanged sharp personal attacks on Trump's platform, Truth Social, and Musk's social media platform, X (formerly known as Twitter).

Trump took to Truth Social to express his thoughts, stating, "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts." This comment sent ripples through the financial markets, prompting Wall Street traders to sell off shares of Tesla. The electric vehicle manufacturer saw its stock plummet by an astonishing 14.3%, resulting in a staggering loss of around $150 billion in market value, marking the largest single-day decline in Tesla's history.

Shortly after the stock market's closing bell, Musk responded to the escalating tensions with a succinct yet provocative reply. He simply replied "Yes" to a post on X that suggested Trump should be impeached. Notably, Trump's Republican Party maintains majorities in both the House of Representatives and the Senate, making any serious consideration of impeachment highly unlikely.

The rift between Trump and Musk had been simmering prior to this public blow-up. Just days earlier, Musk had criticized Trump’s extensive tax-cut and spending legislation, expressing concerns that it would exacerbate the national debt, which currently stands at a staggering $36.2 trillion. Initially, Trump refrained from commenting on Musk's opposition to the bill, but he eventually voiced his disappointment in Musk during a press conference, stating, "Look, Elon and I had a great relationship. I don't know if we will anymore."

Musk, never one to shy away from confrontation, responded with increasingly biting posts on X. He asserted, “Without me, Trump would have lost the election,” a jab considering his substantial financial backing of Trump and other Republican candidates during last year’s elections, totaling nearly $300 million. Musk further claimed that Trump's tariffs would lead the U.S. into an impending recession.

Beyond Tesla, Musk’s business empire includes SpaceX, a vital government contractor, and its satellite service, Starlink. In light of Trump’s threats, Musk suggested that he might begin decommissioning SpaceX's Dragon spacecraft, which is currently the only U.S. vehicle capable of transporting astronauts to the International Space Station. However, within hours, Musk appeared to backtrack on this decision after a follower suggested that he and Trump should take a step back. Musk replied, "Good advice. Ok, we won't decommission Dragon." This response hinted at a possible desire to de-escalate the tensions.

In another sign that Musk might be considering a way to cool the situation, he later acknowledged hedge fund manager Bill Ackman's comment advocating for peace between the two powerful men. Musk responded with, "You're not wrong," which may indicate a willingness to mend fences.

The heated exchange was not entirely surprising; both Trump and Musk are known for their combative styles and their penchant for using social media as a battleground against their perceived adversaries. Many political analysts had speculated that a fallout was inevitable, given their respective personalities.

Prior to Musk's departure from the administration just a week ago, his influence within the Trump administration had reportedly diminished following several clashes with Cabinet members. This feud represents the first significant split between Trump and a key advisor since he began his second term, recalling a history of conflicts with various advisors and staff during his first term from 2017 to 2021.

As one of the most prominent donors within the Republican Party for the 2024 election cycle, Musk has been a visible ally to Trump, previously holding the title of head of the Department of Government Efficiency. This role saw him push controversial measures aimed at reducing the federal workforce and slashing government spending. Musk was frequently spotted in the White House and had made several appearances on Capitol Hill, sometimes bringing along his young son.

Just one week before this public fallout, Trump and Musk had shared a moment in the Oval Office where Trump praised Musk's contributions to the government, and the two appeared to express a commitment to continuing their collaboration.

The ongoing feud between Trump and Musk could potentially hinder Republican efforts to maintain control of Congress in the upcoming midterm elections. Musk's substantial political contributions and his vast online influence could play a critical role in shaping the party's fortunes, especially as he has indicated plans to scale back his political donations moving forward.

Following Trump’s remarks, Musk turned to his 220 million followers on X to gauge public sentiment, polling them with the question, "Is it time to create a new political party in America that actually represents the 80% in the middle?" This inquiry seemed to reflect his growing estrangement from the current political landscape.

Musk has been vocal in his opposition to Trump’s ambitious spending bill, referring to it as a "disgusting abomination" that would only deepen the federal deficit. His public critique further highlighted fractures within the Republican Party that could endanger the bill’s future in the Senate. Nonpartisan analysts have warned that Trump’s proposed legislation could increase the national debt by an estimated $2.4 trillion to $5 trillion.

Trump countered Musk's assertions, suggesting Musk's true grievance was rooted in the elimination of consumer tax credits for electric vehicles within the bill. Trump insinuated that Musk was nostalgic for his time in the administration, saying, "He's not the first... people leave my administration and then at some point they miss it so badly." Musk, unfazed, exclaimed on X, "KILL the BILL," while expressing conditional support for Trump’s proposed cuts to electric vehicle credits, provided the bill was stripped of what he called a "mountain of disgusting pork" or unnecessary spending.

Despite Musk's ambitious agenda to cut $2 trillion from the federal budget upon entering the administration, his tenure concluded with only a marginal decrease in expenditures, leaving many to wonder about the impact of his political pursuits on Tesla’s sales and overall business performance. Protests at Tesla facilities across the U.S. and Europe have spiked, reflecting discontent among some consumers and employees regarding Musk's increasingly political focus, which analysts fear may distract from the company's core operations.

As both Trump and Musk navigate the fallout from their public disagreements, the future of their relationship—and its implications for their respective political and business endeavors—remains uncertain.