The simmering conflict between President Donald Trump and tech billionaire Elon Musk has erupted into a full-blown public feud, with Trump now threatening to cut off billions in government contracts and subsidies for Musk’s companies. The dispute began when Musk, the CEO of Tesla and SpaceX, openly criticized Trump’s signature tax and spending bill, calling it an “abomination” and arguing it unfairly targets clean energy industries while preserving fossil fuel subsidies.
Trump responded on his Truth Social platform, writing, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!” The president also expressed disappointment in Musk, accusing him of souring on the bill because it would roll back tax incentives for electric vehicles—a move Musk has vocally opposed.
Musk fired back on social media, dismissing Trump’s comments with a terse “Whatever,” and later escalated his rhetoric by claiming, “Without me, Trump would have lost the election,” referencing the hundreds of millions he reportedly spent supporting Trump’s campaign. The billionaire also accused Trump of ingratitude, highlighting his previous role as a Trump administration official focused on cutting wasteful government spending.
The feud has sent shockwaves through financial markets, with Tesla’s stock plunging over 14% in a single day—its steepest drop since March and the second-worst since 2020—erasing approximately $150 billion in market value. Shares in Trump’s own media company also declined after Musk suggested a controversial connection between Trump and financier Jeffrey Epstein.
Analysts warn that the deteriorating relationship could have lasting repercussions for Musk’s businesses, which rely heavily on federal contracts. SpaceX, for instance, holds multi-billion-dollar deals with NASA and the Pentagon, while Tesla has benefited from significant subsidies for electric vehicle production. The prospect of losing these contracts has heightened anxiety among investors and industry watchers.
As both men continue their war of words online, the feud shows no signs of cooling, raising questions about the future of government support for Musk’s ventures and the broader implications for U.S. technology and energy policy