Trump Threatens Musk’s Contracts as Feud Between Billionaires Explodes

President Donald Trump on Thursday threatened to revoke Elon Musk’s government contracts, escalating a rapidly growing public feud between the two billionaires. Trump hinted he might use the power of the U.S. government to financially damage Musk, a dramatic turn in their once-cooperative relationship.

The fallout unfolded across their social media platforms shortly after Trump raised the issue during a meeting with Germany’s new leader at the White House.

The bitter clash comes less than a week after the two stood side by side at the White House, where Trump had publicly thanked Musk for his short but controversial stint in the U.S. government.

Trump had mostly stayed quiet as Musk spent the past few days venting on his platform, X, criticising the president’s hallmark tax cuts and spending legislation. But on Thursday, Trump hit back from the Oval Office, expressing disappointment and acknowledging the strain in their relationship.

Musk, in turn, fired off a response in real time on social media.

The clash escalated further when Trump took to his own platform, and threatened to cut off federal support for Musk’s companies—Starlink and SpaceX—warning he could use the government to hit Musk financially.

“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. “I was always surprised that Biden didn’t do it!”

“This just gets better and better,” Musk shot back on X. “Go ahead, make my day.”
The feud intensified in the same way their relationship began—fast, fiery, and in full public view.

Even before Trump’s threat became official, it had financial consequences for Musk. As Trump began speaking about him, shares of Musk’s electric vehicle company, Tesla, dropped 9%. It marked the latest sharp swing in the stock since the election: the shares had doubled following Trump’s win, tumbled during Musk’s stint at DOGE, and then surged again in April after he pledged to refocus on Tesla and his other ventures.

Musk then landed a pointed jab at a president known for valuing loyalty and public perception: “Without me, Trump would have lost the election,” he claimed.

“Incredible ingratitude,” he added in a follow-up post.

Politicians and their wealthy backers often clash, but few splits have been as dramatic as the one between Donald Trump and Elon Musk. Musk poured at least $250 million into supporting Trump’s campaign, and in return, Trump granted him sweeping influence through the Department of Government Efficiency, allowing Musk to cut deep into federal operations. Yet the scale of their alliance is now rivalled only by the speed of its unravelling.

Musk publicly endorsed Trump soon after the then-candidate narrowly survived an assassination attempt at a rally in Butler, Pennsylvania, last July. Just days later, news broke that Musk had launched a political action committee to back Trump’s bid for the presidency.

Also Read: Trump–Musk Feud Explodes Into Public War of Words