WASHINGTON, June 6— A public rift between President Donald Trump and billionaire entrepreneur Elon Musk escalated into a bitter and personal social media clash Thursday, with Trump threatening to terminate federal contracts with Musk’s companies and Musk responding by suggesting the president should be impeached.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump posted on Truth Social, signaling a sharp departure from what had once been a mutually beneficial alliance.
The fallout was immediate. Wall Street reacted swiftly, sending shares of Tesla tumbling 14.3% in its worst single-day loss ever, erasing nearly $150 billion from its market value.
Just minutes after the market closed, Musk endorsed a post on X (formerly Twitter) calling for Trump’s impeachment, replying simply: “Yes.” While Republicans currently control both chambers of Congress, making impeachment highly unlikely, the remark marked a striking turn in the relationship between the world’s most powerful politician and its wealthiest businessman.
The rift had been simmering for days. Tensions peaked after Musk openly criticized Trump’s expansive tax-and-spending bill, labeling it a “disgusting abomination” that would balloon the nation’s $36.2 trillion debt. Trump initially refrained from responding, even as Musk led a campaign to block the bill’s passage. But on Thursday, the president lashed out from the Oval Office.
“I’m very disappointed in Elon,” Trump told reporters. “Look, Elon and I had a great relationship. I don’t know if we will anymore.”
Musk fired back in real time, accusing Trump of ingratitude. “Without me, Trump would have lost the election,” Musk posted, referencing the nearly $300 million he spent supporting Trump and GOP candidates during the 2024 campaign. He also warned that Trump’s tariff policies could drag the U.S. into a recession.
The feud represents Trump’s first major political fallout with a top adviser during his second term. As head of the Department of Government Efficiency, Musk had spearheaded aggressive efforts to shrink the federal workforce and slash spending. Until last week, he was seen as one of Trump’s most influential allies in Washington.
“People leave my administration… then at some point they miss it so badly,” Trump remarked Thursday, alluding to Musk’s departure from the administration just days earlier. “Some of them embrace it and some become hostile.”
Musk’s criticism of the bill—which he called “a mountain of disgusting pork”—extended to Trump’s proposal to eliminate electric vehicle tax credits. Still, he insisted he supported the cuts, provided other forms of wasteful spending were also removed.
Musk had arrived in government promising $2 trillion in cuts; he departed with less than 1% achieved and significant disruptions across several federal agencies. His growing focus on political battles has also stirred backlash among Tesla workers and customers, particularly in Europe, where protests erupted this week. Investors are increasingly wary of Musk’s divided attention between business and politics.
Besides Tesla, Musk leads SpaceX, which contracts with NASA and the U.S. military, and Starlink, a key provider of satellite internet services. In retaliation to Trump’s threat, Musk initially declared he would decommission the Dragon spacecraft—currently the only American vehicle capable of ferrying astronauts to the International Space Station.
Hours later, Musk appeared to step back from that decision, replying “Good advice. Ok, we won’t decommission Dragon,” after a follower urged both men to pause and reflect.
Another sign of possible detente emerged late Thursday when Musk responded, “You’re not wrong,” to billionaire Bill Ackman’s call for reconciliation between the two.
Still, the political implications of the feud are significant. With midterm elections on the horizon, the breakdown in Trump and Musk’s alliance could complicate Republican efforts to retain control of Congress. Musk, who said he intends to scale back political donations, remains a powerful force with 220 million X followers and deep influence among Silicon Valley donors.
He also polled his followers Thursday evening: “Is it time to create a new political party in America that actually represents the 80% in the middle?”
The open brawl between Trump and Musk reflects their shared combativeness and massive public platforms—but also underscores the fragility of power alliances built more on visibility than vision. As one White House official put it, “No one should be surprised. These are two men who don’t like being told no.”
