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- Trump threatened to cancel all government contracts and subsidies tied to Elon Musk’s companies.
- Musk called Trump’s claims an “obvious lie” and said his support helped Republicans win in 2024.
- Tesla’s stock dropped 14% following the feud, signaling deep investor concern over the fallout.
- Trump’s “One Big Beautiful Bill” removed EV incentives and deepened the rift between the two figures.
Donald Trump threatens to cut Elon Musk off from billions in government contracts, breaking their fragile alliance in a spectacular public fallout. What began as a policy disagreement over Trump’s new spending bill quickly turned into a political brawl. Musk fired back, accusing the former president of betrayal, lies, and reckless leadership. The clash triggered a 14% plunge in Tesla stock and sparked fears about future legislation, federal funding, and party loyalty.
The rift centers on Trump’s latest legislative proposal, a sweeping tax and spending plan dubbed the “One Big Beautiful Bill Act.” Musk called the bill reckless, accusing Trump of pushing it through without review and warning it would deepen the federal deficit. As Musk’s criticism grew louder, Trump responded with fury, labeling the billionaire “crazy” and implying Musk suffers from “Trump Derangement Syndrome.” Then came the threat: end Tesla and SpaceX’s government contracts to save “billions and billions” from the national budget.
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Government Subsidies and Personal Grudges Collide
For years, Trump and Musk projected mutual admiration. That has now collapsed under the weight of ego, politics, and money. Trump claimed he “helped Musk a lot,” suggesting the tech mogul’s criticism is an act of disloyalty. Musk denied the narrative, branding Trump’s accusations an “obvious lie” and asserting that his influence helped secure Trump’s election win and Republican control of Congress.
Such an obvious lie. So sad. https://t.co/sOu9vqMVfX
— Elon Musk (@elonmusk) June 5, 2025
Musk also condemned Trump’s bill for eliminating electric vehicle incentives, extending tax breaks for the wealthy, and slashing environmental programs. The tech CEO’s public rebuke drew a furious response from Trump, who used his Truth Social platform to float the idea of terminating all federal deals with Musk’s companies—including those tied to space exploration and transportation innovation.
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Political Fallout and Media Divide
The feud has moved far beyond personal insults. Musk’s opposition to Trump’s spending plan may signal a broader political shift. Some insiders believe he could back anti-Republican candidates in the next election. If true, it could reshape the political landscape. Meanwhile, Trump’s willingness to weaponize federal contracts has raised alarm about his approach to policy and power.
Media coverage reflects the divide. CNN, PBS NewsHour, and The Los Angeles Times painted Trump as unstable and petty. They described the split as a “celebrity breakup” and questioned his mental fitness. On the right, commentators focused on Musk’s perceived disloyalty. They framed Trump’s retaliation as a justified move against an ungrateful billionaire. Outlets like Bloomberg and NBC News took a more neutral tone. They highlighted the financial impact and the high-stakes political consequences.
As the standoff drags on, investors and lawmakers grow more uneasy. With both men wielding massive influence, this clash could shape not only their legacies but the future of U.S. politics and industry.
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