Trump–Musk alliance collapses in public: "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts"
The once-close political partnership between US President Donald Trump and billionaire tech entrepreneur Elon Musk has unraveled in spectacular fashion, as a clash over government spending and influence spills into a full-blown public dispute.
Key Information:
- Trump vs Musk: Trump threatens to revoke government contracts; Musk claims credit for Trump’s 2024 win.
- Trigger Point: The row began over Musk’s opposition to Trump’s major domestic spending bill.
- Personal Fallout: Trump called Musk "crazy" and accused him of self-interest; Musk labelled Trump "ungrateful".
- Broader Impact: Musk suggests forming a new party; Tesla shares tumble as feud escalates.
President Trump ignited the row on Thursday, threatening to terminate billions of dollars in federal contracts with Musk’s companies, including Tesla and SpaceX. Posting on his Truth Social platform, Trump described Musk as having "gone CRAZY" and accused him of being driven by personal disappointment over policy changes — specifically, the phasing out of electric vehicle subsidies.
"The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," Trump wrote.
The feud comes just days after Musk stepped down from his official advisory role in the Trump administration, where he had been leading efforts to slash federal spending through the Department of Government Efficiency, or DOGE. Once dubbed Trump’s "first buddy," Musk was frequently seen at White House meetings and had campaigned for Trump during the 2024 election.
Musk responded to the president’s criticism in real time on his social media platform X, claiming that Trump’s re-election and the Republican gains in Congress would not have been possible without his support. "Without me, Trump would have lost the election," Musk posted, branding Trump’s remarks as "such ingratitude." Musk had reportedly donated around $290 million to support Trump and other Republicans.
The fallout appears to have been sparked by Musk’s increasingly vocal criticism of Trump’s flagship domestic policy, the so-called One Big, Beautiful Bill Act, which Musk has described as a "disgusting abomination." He argued that the legislation would balloon the national deficit and undermine the cost-cutting gains achieved by DOGE. Trump, in turn, dismissed Musk’s complaints as self-serving, suggesting he was upset over the removal of EV tax credits that benefit Tesla.
Beyond policy, the feud has taken on a personal tone. Trump suggested Musk suffers from "Trump derangement syndrome," and Musk retaliated by insinuating the president’s motives were clouded by past grudges. The spat has already begun to ripple across political and financial spheres — Tesla’s stock plummeted. At the same time, Musk hinted at forming a new political party and funding primary challengers against Republican lawmakers who supported the bill.
