Trump-Musk Feud intensifies as former allies become rivals—Trump threatens to cut federal contracts with Elon Musk’s companies, while Musk supports calls for Trump’s impeachment.
Trump-Musk Feud Turns Explosive: Once Allies, Now Fierce Rivals
Trump-Musk feud has taken a dramatic turn, as the once cordial relationship between former U.S. President Donald Trump and tech billionaire Elon Musk erupts into a fierce public battle. The conflict now includes Trump threatening to cancel billion-dollar federal contracts with Musk’s companies and Musk openly backing calls for Trump’s impeachment. This high-profile clash between two of the most influential figures in American politics and business is sending shockwaves through the nation’s political landscape and financial markets.
The feud began to boil over earlier this week after Musk publicly criticized Trump’s newly proposed economic policies. According to Musk, the Trump-backed bill—rumored to significantly increase government spending—would “explode the federal deficit” and negatively impact clean energy initiatives, including electric vehicle (EV) subsidies critical to Tesla’s bottom line.
In response, Trump took to his social media platform, Truth Social, with a scathing statement, vowing to terminate all federal subsidies and contracts with Musk’s companies. He claimed that canceling these deals would save the government “Billions and Billions of Dollars.” The sharp rebuke marked a stunning reversal in tone from their earlier interactions, during which Musk had occasionally supported Trump’s policy direction and even attended White House events.
Trump Threatens Billions in Federal Funding for Musk
At the heart of Trump’s retaliation lies a vast network of federal contracts and subsidies that benefit Musk’s companies, including Tesla, SpaceX, and The Boring Company. These contracts, especially with NASA and the Department of Defense, are worth billions. If terminated, the decision could not only disrupt major government projects but also damage Musk’s business empire.
“Why should the American taxpayer be giving subsidies to someone who turns around and stabs us in the back?” Trump asked rhetorically during a recent press conference in Florida. His comments drew strong reactions across party lines, with many questioning whether personal vendettas should influence federal contract decisions.
Industry experts have warned that severing ties with Musk’s companies could set a dangerous precedent. “This could deeply impact U.S. innovation and space competitiveness,” said tech analyst Rachel Mendez. “SpaceX plays a vital role in both national defense and commercial space travel.”
Musk Fires Back by Backing Trump’s Impeachment
Elon Musk did not take Trump’s threats lightly. In a fiery exchange on X (formerly Twitter), Musk responded affirmatively to a post calling for Trump’s impeachment. This move has drawn wide attention given Musk’s historically conservative-leaning stance and prior donations to Republican candidates.
The public nature of the feud has amplified its visibility, drawing millions of views online. In one tweet, Musk wrote:
“If leadership becomes a threat to national stability and innovation, it must be held accountable. No one is above the Constitution.”
This marked a significant pivot in Musk’s public stance toward Trump and has further polarized opinion among both of their supporter bases.
Stock Market Reacts: Tesla Suffers Major Blow
The feud has already begun to show tangible consequences in the financial world. Tesla stock plunged by 14.3% in a single day, wiping out nearly $150 billion in market capitalization—its worst trading day in company history. Investors were spooked by the threat of losing federal incentives, which have historically played a role in sustaining EV demand in the U.S.
“This level of uncertainty isn’t just about politics,” said Wall Street analyst Greg Horton. “It’s about policy instability and the government turning into a tool for settling personal scores.”
Meanwhile, shares of other Musk-owned ventures, such as SpaceX, remain privately held but could face increased scrutiny and risk as investigations into federal contracts and regulatory compliance intensify.
Political Fallout: A Divided Republican Party
The Trump–Musk clash has also exposed deepening rifts within the Republican Party. While some GOP members have echoed Trump’s criticism of government subsidies for big tech companies, others have cautioned against alienating Musk, whose businesses employ tens of thousands and contribute significantly to technological innovation.
Senator Lisa Murkowski of Alaska commented, “We can’t just cut off our nose to spite our face. Federal contracts with companies like SpaceX are strategic necessities.”
Musk, meanwhile, has seen increasing support from centrist and libertarian-leaning figures, some of whom believe he represents a more rational and science-driven counterweight to populist rhetoric.
The Road Ahead: Will This End in Congress or Court?
As the feud escalates, many are speculating whether this conflict could end up in congressional hearings or even legal battles. If Trump regains influence or reclaims the presidency, his ability to follow through on threats to cut off Musk could become more realistic. However, any such move would likely face legal scrutiny regarding breach of contract, misuse of executive power, and the politicization of public spending.
For now, both Trump and Musk remain defiant. Trump continues to campaign on a platform of “draining the swamp” and cutting what he calls “wasteful tech subsidies.” Musk, on the other hand, has hinted at ramping up his own political activism, possibly by backing candidates who support innovation and clean energy.
Conclusion
What began as policy disagreement has morphed into one of the most high-profile political-business feuds in recent memory. As Trump and Musk exchange barbs, the consequences are already being felt across political, economic, and technological domains. Whether this ends in compromise, court, or chaos remains to be seen—but one thing is clear: the Trump–Musk war is far from over.
