President Donald Trump and billionaire entrepreneur Elon Musk publicly clashed on Thursday, shattering their once-close relationship. Trump threatened to cancel federal contracts with Musk’s companies, while Musk called for Trump’s impeachment on X (formerly Twitter), escalating tensions in a public feud.
The dispute began after Trump criticised Musk in the Oval Office for opposing a sweeping tax and spending bill. Hours later, Trump posted on Truth Social that eliminating Musk’s government contracts would save billions in the federal budget.
Wall Street reacted swiftly, Tesla shares plunged 14.3%, erasing roughly $150 billion in market value, the steepest single-day drop in Tesla’s history.
In response, Musk agreed with a post calling for Trump’s impeachment. Though Republicans currently control Congress, making impeachment unlikely, the public fallout marked a major rupture in what had been a powerful alliance.
The feud had been simmering for days. Musk had sharply criticised Trump’s legislation, calling it fiscally irresponsible. Trump remained silent initially, but broke his silence Thursday, expressing disappointment: “Elon and I had a great relationship. I don’t know if we will anymore.”
Musk warned that Trump’s tariffs could trigger a recession and even announced plans to decommission SpaceX’s Dragon spacecraft, the only U.S. craft capable of sending astronauts to the International Space Station, as retaliation for Trump’s threats. However, he later reversed that decision following calls for de-escalation.
In a further olive branch, Musk acknowledged hedge fund manager Bill Ackman’s call for reconciliation.
Fallout and Political Implications
The Trump-Musk fallout underscores their shared combativeness and willingness to leverage social media as a political weapon. Musk, who briefly served as head of the Department of Government Efficiency, had clashed with Cabinet officials and failed to make significant budget cuts before stepping down last week.
The public fight marks Trump’s first major rift with a close adviser since returning to the presidency. Their deteriorating relationship could complicate Republican efforts in the upcoming midterms. Musk, with his vast wealth and online reach, had helped bridge Trump’s influence into tech and donor circles.
After Trump’s public rebuke, Musk floated the idea of a new political party representing the political middle, polling his 220 million followers on X.
Musk has fiercely opposed Trump’s latest tax-and-spending plan, calling it a “disgusting abomination” due to its potential to add up to $5 trillion in new debt. Trump, in turn, accused Musk of being bitter over the bill’s elimination of EV tax credits.
Musk insisted his opposition wasn’t personal and encouraged Republicans to remove the “mountain of disgusting pork” from the bill. Despite entering government with a pledge to slash $2 trillion from the budget, Musk departed having cut just a fraction, drawing criticism for his unfocused leadership.
His increasing political involvement also sparked protests at Tesla sites and concern among investors, contributing to falling sales and declining confidence in his leadership.
Reuters/S.S