Trump-Musk Feud Escalates: Contracts Cut, Impeachment Calls, and Market Chaos
Trump-Musk Feud Escalates: Contracts Cut, Impeachment Calls, and Market Chaos | Credits: Allison Robbert and Saul Loeb (AFP).

Trump-Musk Feud Escalates: Contracts Cut, Impeachment Calls, and Market Chaos

Trump-Musk Feud Escalates: The Trump-Musk feud erupted publicly on Thursday. President Trump threatened to cut government contracts with Elon Musk’s companies. Musk responded by supporting Trump’s impeachment. The clash unfolded on social media, shocking investors and political observers.

Tesla’s stock plunged 14.3%, losing $150 billion in value. The fight began after Musk criticized Trump’s tax bill. Both men traded sharp insults online. This marks a major fallout between two of the most powerful figures in the U.S.

Also Read | Elon Musk’s Spending Bill Criticism Shakes Up GOP Unity Over Trump’s $4 Trillion Legislation

Trump-Musk Feud Escalates: Insights

  • Tesla’s stock dropped 14.3%, its worst single-day loss ever.
  • Trump threatened to cancel government contracts with Musk’s firms.
  • Musk suggested Trump should be impeached, escalating tensions.
  • The feud started over Trump’s tax and spending bill.
  • SpaceX may decommission the Dragon spacecraft, impacting NASA missions.

Background

Trump and Musk were once close allies. Musk donated heavily to Trump’s 2024 campaign and later joined Trump’s administration to cut government spending. However, clashes over policy grew. Musk opposed Trump’s new tax bill, calling it wasteful. Trump initially stayed quiet but finally snapped. Their feud follows a pattern; both men often attack critics online.

Main Event

The Trump-Musk feud exploded on June 6, 2025. Trump posted on Truth Social, vowing to end Musk’s government contracts and blaming Musk for wasteful spending. Tesla’s stock crashed within hours. Musk fired back on X, agreeing Trump should be impeached. He also threatened to halt SpaceX’s Dragon spacecraft, which NASA relies on.

Trump criticized Musk in the Oval Office, calling him ungrateful. Musk reminded Trump of his $300 million campaign support and warned that Trump’s policies could cause a recession. The fight grew from policy disputes to personal attacks.

Just days earlier, they appeared together, promising cooperation. Now, their feud risks hurting Republican election chances. Musk has a huge online following and donor network. If he withdraws support, GOP control of Congress could weaken.

President Donald Trump addresses the media alongside Elon Musk during a press briefing in the White House Oval Office on May 30, 2025. The event took place in Washington, D.C.

Photo Credits:Evan Vucci (AP).

Also Read | Elon Musk’s Tax Bill Criticism Grows as He Slams Trump’s Spending Plan

Implications

The Trump-Musk feud affects multiple groups. Investors fear instability, as seen in Tesla’s crash. NASA may face delays if SpaceX halts Dragon missions. Republicans could lose funding and votes ahead of the midterms. Businesses tied to Musk or Trump may suffer. The public sees a bitter divide between two influential leaders.

Conclusion

The Trump-Musk feud shows no signs of ending soon. Experts warn it could reshape politics and business. Musk may form a new political party, and Trump could push harder against tech leaders. One thing is clear: this clash will have lasting consequences.

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