Tensions between allies United States President, Donald Trump and billionaire entrepreneur, Elon Musk, reached a boiling point on Thursday, with Trump threatening to revoke federal contracts tied to Musk’s companies.
In a dramatic turn, Musk endorsed a social media call for Trump’s impeachment, leaving many stunned at the public unraveling of their political alliance.
Reuters reported that the clash escalated rapidly after Trump, speaking from the Oval Office, took direct aim at Musk, the Tesla and SpaceX CEO.
The two then exchanged heated jabs on their respective social media platforms, Trump on Truth Social and Musk on X.
“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 in a Truth Social post.
Following the president’s remarks, Tesla’s stock nosedived, closing down more than 14% and wiping out roughly $150 billion in market value, the most significant single-day loss in the company’s history.
Shortly after markets closed, Musk gave a terse yet explosive reply on X, responding “Yes” to a post suggesting Trump should be impeached, an extraordinary sentiment considering Trump’s Republican Party dominates both chambers of Congress.
The friction had been mounting for several days. Musk had recently denounced Trump’s proposed tax and spending legislation, criticizing it for adding further strain to the nation’s $36.2 trillion debt.
While Trump initially refrained from commenting, he eventually broke his silence.
“Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump told reporters. “I’m very disappointed in Musk.”
Musk, meanwhile, fired off a salvo in real-time.
“Without me, Trump would have lost the election,” he wrote, highlighting the nearly $300 million he spent to support Trump and other Republicans in the last election cycle.
In another post, Musk blasted Trump’s economic strategy, warning that his tariffs could drive the U.S. economy into a recession later this year.
With SpaceX and its satellite subsidiary Starlink deeply embedded in U.S. government space operations, Trump’s threats placed key national programs at risk.
At one point, Musk said he would begin winding down operations of SpaceX’s Dragon spacecraft, the only American vehicle currently capable of ferrying astronauts to the International Space Station. However, he later stepped back from that decision.
Hints of a possible reconciliation emerged late Thursday when Musk replied, “You’re not wrong,” to a post by billionaire Bill Ackman suggesting that the two powerhouses should resolve their differences.
Known for their combative styles and heavy reliance on social media to shape public opinion, Trump and Musk’s feud was not entirely unexpected.
As head of the Department of Government Efficiency under Trump, Musk had led controversial initiatives to reduce federal staffing and curb spending. His departure from that post marked a shift in tone, culminating this week with Musk slamming Trump’s flagship economic package.
He described the bill, widely referred to by Trump as his “big, beautiful bill”—as a “disgusting abomination” and accused it of worsening the fiscal deficit.
Analysts warn the proposed legislation could add anywhere between $2.4 trillion and $5 trillion to the country’s already massive debt, further deepening divisions within the Republican Party and complicating the bill’s chances in the Senate.
Political observers worry that an extended fallout between Musk and Trump could hurt Republican prospects in next year’s midterm elections, particularly if Musk withdraws financial backing or sways Silicon Valley support away from Trump.
“Elon really was a significant portion of the ground game this last cycle,” a Republican strategist familiar with both men told Reuters anonymously. “If he sits out the midterms, that worries me.”
Musk has signaled a retreat from political spending, with growing protests at Tesla facilities reflecting concerns over his political engagement. On Tuesday, he posted a blunt message: “In November next year, we fire all politicians who betrayed the American people.”
