The once-close relationship between the U.S. President Donald Trump and billionaire Elon Musk has unravelled into a public feud, as both figures exchanged sharp blows on social media following Trump’s threat to cancel government contracts with Musk’s companies.
Speaking from the Oval Office on Thursday, Trump said, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.” Musk quickly fired back on his platform X, responding “Yes” to a user calling for Trump’s impeachment.
The fallout caused Tesla’s shares to plunge 14.3%, erasing around $150 billion in value. Tensions had been building over the week as Musk criticised Trump’s proposed tax and spending bill, calling it a “disgusting abomination” and urging lawmakers to “KILL the BILL.”
Musk, formerly a top adviser and the head of the Department of Government Efficiency (DOGE), played a key role in Trump’s administration and contributed nearly $300 million to the 2024 campaign. His departure and vocal opposition to Trump’s bill have deepened internal Republican divisions.
Musk announced plans to begin decommissioning SpaceX’s Dragon spacecraft in response to Trump’s threats. He also launched a poll on X, asking followers if it’s time to form a new centrist political party.
Meanwhile, the White House emphasised that “this White House is not beholden to Elon Musk on policy,” signalling a clear break in the alliance.