Trump and Musk’s conflict intensifies with threats to terminate contracts and support for impeachment

President Donald Trump threatened to cut government contracts with Elon Musk’s companies, escalating a public feud after Trump criticized Musk in the Oval Office. Once allies, both publicly exchanged insults on social media.

Trump posted about terminating Musk’s subsidies, resulting in a 14.3% drop in Tesla’s stock, losing $150 billion in market value, its largest single-day decline. Musk responded affirmatively to calls for Trump’s impeachment, highlighting their deteriorating relationship. Musk previously criticized Trump’s tax cuts, and Trump expressed disappointment in Musk’s actions. Musk claimed his support was crucial for Trump’s election victory and warned that Trump’s tariffs could lead to a recession.

Additionally, Musk indicated plans to decommission SpaceX’s Dragon spacecraft due to Trump’s threats, signaling the feud’s impact on U.S. space missions. The conflict reflects their volatile personalities and the challenges in their relationship.

Musk, the largest Republican donor in the 2024 campaign, became a prominent adviser to Trump as head of the Department of Government Efficiency, attempting to reduce the federal workforce and spending. He was active in the White House and Capitol Hill, even bringing his son to events. Just days before a public conflict, Trump praised Musk’s service. A rift between them could hinder Republican control in upcoming midterm elections. Musk, with a 220 million follower base on X, polled his audience on creating a new political party.

He criticized Trump’s “big, beautiful bill,” claiming it would worsen the federal deficit, and labeled it a “disgusting abomination.” Trump suggested Musk’s opposition stemmed from lost EV tax credits. Despite ambitious budget cut plans, Musk achieved minimal reductions in spending, causing unrest in Tesla and raising investor concerns.