The dramatic and increasingly bitter feud between President Donald Trump and tech mogul Elon Musk reached a perilous new level on Thursday, with the President explicitly threatening to sever Musk’s vast network of government contracts and subsidies. The stunning escalation, played out in real-time across social media and presidential remarks, signals a complete breakdown in what was once a powerful, if unconventional, alliance.
Just days after a seemingly cordial White House farewell marking the end of Musk’s official 130-day tenure leading the “Department of Government Efficiency” (DOGE), the relationship soured rapidly. Musk ignited the public spat by lambasting Trump’s signature “Big Beautiful Bill”—a sprawling tax and spending package—as a “disgusting abomination” that would exacerbate the national debt.
President Trump, initially expressing “disappointment” in Musk’s criticism, quickly turned combative. On his social media platform, Truth Social, Trump unleashed a direct and potent threat aimed squarely at Musk’s financial bottom line.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump declared. “I was always surprised that Biden didn’t do it!”
This is no idle threat. Musk’s sprawling empire, encompassing Tesla and SpaceX, relies heavily on billions of dollars in federal contracts and subsidies. SpaceX holds lucrative agreements with NASA for astronaut transport and cargo missions to the International Space Station, as well as critical national security contracts with the Pentagon for satellite launches and Starlink internet services. Tesla, meanwhile, has benefited from various federal and state incentives for electric vehicle adoption and renewable energy. The potential termination of these contracts could have devastating consequences for Musk’s companies and their ambitious projects.

Musk swiftly retaliated on X (formerly Twitter), defiantly posting, “This just gets better and better. Go ahead, make my day.” He also continued to deny Trump’s claim that he was fully aware of the bill’s contents, asserting it was “passed in the dead of night so fast that almost no one in Congress could even read it!” Musk maintained his criticism was primarily about the “MOUNTAIN of DISGUSTING PORK in the bill,” rather than specific provisions like the rollback of electric vehicle tax credits, as Trump had suggested.
The President, in turn, escalated the personal dimension of the feud, claiming he had “asked [Musk] to leave” his White House role because he was “wearing thin” and that Musk had “just went CRAZY!” Trump also dismissed Musk’s assertion that he was instrumental in Trump’s electoral victory, suggesting Musk was suffering from “Trump Derangement Syndrome.”
This dramatic blow-up underscores the high stakes of political alignment in Washington, particularly for business leaders with extensive government ties. The public confrontation, playing out between two of the world’s most recognizable and volatile figures, has already sent ripples through financial markets, with Tesla’s stock reportedly seeing a decline as the rhetoric intensified.
The unfolding drama highlights the precarious nature of alliances forged in the transactional world of politics, where loyalty and perceived slights can quickly turn powerful benefactors into formidable adversaries. As Trump explicitly wields the immense power of federal contracts, the conflict between the President and the billionaire enters an unpredictable new phase, with potentially profound implications for both their legacies and the industries Musk has revolutionized.