A public feud erupted between former President Donald Trump and billionaire Elon Musk, with Trump threatening to cut government contracts with Musk’s companies and Musk suggesting Trump should be impeached. The dispute, playing out on social media, marks a dramatic breakdown in their once-close alliance.
Read More : Elon Musk Bids Farewell to Trump Administration
Trump Threatens to Strip Musk’s Contracts
Trump, in a post on Truth Social, declared, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.” The statement sent Tesla shares plummeting by 14.3%, wiping out roughly $150 billion in market value—the company’s worst single-day drop ever.
Read More: Elon Musk Bids Farewell to Trump Administration
Musk fired back on X (formerly Twitter), replying “Yes” to a post calling for Trump’s impeachment. Given Republican control of Congress, impeachment remains unlikely, but the exchange underscored the escalating tension.
From Allies to Adversaries
The rift began when Musk criticized Trump’s sweeping tax and spending bill, calling it a “disgusting abomination” that would inflate the national debt. Trump, breaking his silence, told reporters in the Oval Office he was “very disappointed” in Musk, saying, “Look, Elon and I had a great relationship. I don’t know if we will anymore.”
Musk responded defiantly, posting, “Without me, Trump would have lost the election,” referencing his $300 million in campaign support for Trump and Republicans in 2024. He also warned that Trump’s tariffs could trigger a U.S. recession.
SpaceX Enters the Fray
Musk escalated the conflict by threatening to decommission SpaceX’s Dragon spacecraft—the only U.S. vehicle currently capable of ferrying astronauts to the International Space Station—in retaliation for Trump’s contract threats. Hours later, after a follower urged both men to “cool off,” Musk appeared to backtrack, writing, “Good advice. Ok, we won’t decommission Dragon.”
Political Fallout Looms
The feud risks complicating Republican efforts in the 2026 midterms, as Musk’s influence and deep pockets have been key to the party’s success. Musk, who previously led a controversial federal cost-cutting initiative under Trump, has already signaled plans to reduce political spending.
In a possible olive branch, Musk agreed with hedge fund manager Bill Ackman’s call for reconciliation, responding, “You’re not wrong.” He also floated the idea of a new centrist political party, polling his 220 million followers: “Is it time to create a new political party in America that actually represents the 80% in the middle?”
Battle Over Trump’s Spending Bill
Musk’s opposition to Trump’s “big, beautiful bill” has exposed GOP divisions, with nonpartisan analysts estimating it could add $2.4 trillion to $5 trillion to the national debt. Trump dismissed Musk’s objections as sour grapes over cuts to electric vehicle tax credits, while Musk insisted his issue was with “mountain of disgusting pork” in the legislation.
The clash highlights the volatile relationship between two of the world’s most powerful figures—both known for their combative styles and social media wars. Whether they reconcile or continue sparring could have major implications for U.S. politics and business.
