Trump–Musk feud escalates with threats to sever contracts and support impeachment

Trump–Musk Feud Erupts with Threats, Market Fallout, and Political Drama

Tensions between U.S. President Donald Trump and billionaire Elon Musk erupted publicly on Thursday, as Trump threatened to sever government contracts with Musk’s companies, prompting Musk to call for the president’s impeachment. The once-warm relationship between the two influential figures quickly unraveled into a fierce online feud, played out on Trump’s Truth Social and Musk’s X (formerly Twitter).

The conflict escalated after Trump slammed Musk during an Oval Office meeting, declaring:

“The easiest way to save Billions in our Budget is to terminate Elon’s Governmental Subsidies and Contracts.”

The market reacted sharply. Shares of Musk’s electric vehicle company, Tesla, plunged 14.3%, wiping out nearly $150 billion in market value—the largest single-day drop in Tesla’s history.

Musk fired back on X, replying “Yes” to a post suggesting Trump should be impeached. Despite the Republican majority in both chambers of Congress making impeachment unlikely, the exchange marked a dramatic breakdown in their alliance.

Origins of the Rift

The fallout had been building. Days earlier, Musk openly opposed Trump’s massive tax and spending package, warning it would deepen the $36.2 trillion national debt. Trump initially stayed quiet as Musk led efforts to derail the bill. But on Thursday, Trump broke his silence, expressing disappointment:

“Elon and I had a great relationship. I don’t know if we will anymore.”

Musk responded swiftly online:

“Without me, Trump would have lost the election.”
“Such ingratitude.”

He also warned that Trump’s tariffs could push the U.S. into a recession later this year.

SpaceX Threats and Walkbacks

Musk’s companies—Tesla, SpaceX, and Starlink—play major roles in U.S. industry and government. In retaliation for Trump’s remarks, Musk announced he would begin decommissioning SpaceX’s Dragon spacecraft, currently the only U.S. vehicle capable of ferrying astronauts to the ISS.

However, hours later, Musk appeared to back down, replying to a user suggesting a cooling-off period:

“Good advice. Ok, we won’t decommission Dragon.”

Later in the evening, he hinted at reconciliation, telling billionaire Bill Ackman, “You’re not wrong,” in response to a call for peace.

Political Fallout

The feud, though dramatic, wasn’t entirely unexpected. Both Trump and Musk are combative figures with large egos and a penchant for online brawls. Their fallout marks Trump’s first major rupture with a high-profile adviser in his second term.

Musk, who served as Trump’s head of the Department of Government Efficiency, had become a central figure in the administration’s push to cut spending and shrink the federal workforce. Just six days before their clash, they appeared together in the Oval Office, praising each other and vowing to work together.

Musk’s prominence in Republican politics—as a megadonor, tech bridge to Silicon Valley, and social media powerhouse—means the rift could have serious implications for the GOP ahead of next year’s midterm elections.

After the blowup, Musk launched a poll on X asking:

“Is it time to create a new political party in America that actually represents the 80% in the middle?”

‘Kill the Bill’

Much of the tension centers on Trump’s flagship tax and spending proposal, dubbed his “big, beautiful bill.” Musk called it a “disgusting abomination,” accusing it of deepening the deficit. Independent analysts estimate the bill could add $2.4 to $5 trillion in new debt.

Trump dismissed Musk’s criticism as self-serving, suggesting the real issue was the bill’s removal of EV tax credits.

“He’s not the first,” Trump said. “Some leave my administration and miss it… others become hostile.”

Musk doubled down, writing “KILL the BILL” and condemning what he called “a mountain of disgusting pork” in the legislation. He resurfaced old Trump quotes about reducing spending, asking:

“Where is this guy today?”

Though Musk entered government with bold plans to cut $2 trillion, he left having trimmed less than 1% of the federal budget—leaving behind political friction and disruption across several agencies.

His increasing political involvement has also triggered protests at Tesla facilities and investor concern over his divided attention, contributing to declining sales and a plunging stock price.