Trump And Elon Musk Clash Heats Up With Threats Of Cutting Contracts, Backing Impeachment

What was once a strong alliance between Donald Trump and Elon Musk has quickly turned into a public spat, with both men trading insults and threats on social media.

On Thursday, President Trump said he’s considering cutting off government contracts with Musk’s companies, while Musk called for Trump’s impeachment in response.

The fallout began after Trump openly criticized the Tesla CEO during an Oval Office meeting on Thursday, June 5, 2025.

Hours later, both men were throwing jabs online—Trump on Truth Social and Musk on X (formerly Twitter)—showing just how far their relationship had soured.

In his post, Trump suggested that slashing federal subsidies and contracts with Musk’s companies could save the government “billions and billions.”

“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 impact was immediate as Tesla’s stock plummeted, dropping 14.3% in a single day and wiping out around $150 billion in market value—the company’s largest one-day loss ever.

Elon Musk responded shortly after the market closed.

He replied with a simple “Yes” to a post suggesting Trump should be impeached, even though that’s highly unlikely given the Republican control of Congress.

Tensions had already been rising in the days leading up to the clash.

Musk had been vocal in opposing Trump’s major tax and spending package, warning it would balloon the already massive $36.2 trillion national debt.

Trump initially stayed quiet, but on Thursday, he told reporters he was “very disappointed” in Musk.

“Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump said.

As Trump spoke, Musk continued to post sharp comments on X.

He reminded followers that he had invested nearly $300 million to support Trump and Republican candidates in the last election, claiming Trump would’ve lost without him.

“Without me, Trump would have lost the election. Such ingratitude,” Musk wrote.

He also warned that Trump’s trade policies could push the U.S. economy into a recession.

Musk’s companies—including Tesla, SpaceX, and Starlink—rely on government partnerships, especially SpaceX, which currently operates the only American spacecraft capable of transporting astronauts to the International Space Station.

In the heat of the feud, Musk announced he would begin winding down the Dragon spacecraft program. But later, Musk backed off.

Responding to a user on X urging him and Trump to “cool off and take a step back for a couple of days,” he agreed, writing: “Good advice. Ok, we won’t decommission Dragon.”

Later that evening, Musk also signaled a softer tone when he replied, “You’re not wrong,” to hedge fund billionaire Bill Ackman’s call for the two men to reconcile.

The feud wasn’t entirely unexpected because both Donald Trump and Elon Musk are known for being combative online and don’t shy away from confrontation.

Their relationship had shown cracks even before Musk’s recent exit from the administration, where he had clashed with cabinet officials over aggressive budget cuts.

This is Trump’s first major falling-out with a top official during his second term, though he had many such conflicts during his first time in office. Some former allies stayed in his corner, like Steve Bannon, while others became critics, like John Bolton.

Musk, who was the biggest Republican donor in the 2024 campaign and headed Trump’s Department of Government Efficiency, had become a key figure in shaping White House policy.

He was regularly seen at the White House and on Capitol Hill.

Just days before the blow-up, Trump had praised Musk and said they would continue working closely.

Now, their fractured relationship could hurt Republican unity ahead of next year’s elections.

Musk not only brings money but also influence through his massive online following and links to Silicon Valley donors. He has already said he plans to reduce his political donations moving forward.

Shortly after Trump’s latest comments, Musk ran a poll on X asking if Americans want a new political party that represents the majority in the middle.

“Is it time to create a new political party in America that actually represents the 80% in the middle?” Musk asked his 220 million followers on X:

Part of what sparked the clash was Musk’s fierce opposition to Trump’s new tax-and-spending bill, which he called a “disgusting abomination.”

Musk warned that the plan would add trillions to the national debt.

Trump suggested Musk was really upset because the bill would eliminate tax breaks for electric vehicles. He also hinted that Musk might just miss being part of the administration.

“He’s not the first,” Trump said on Thursday. “People leave my administration… then at some point they miss it so badly, and some of them embrace it and some of them actually become hostile.”

Musk doubled down, tweeting “KILL the BILL,” and said he didn’t mind losing the EV credits if Republicans cut what he called the “mountain of disgusting pork” in the bill.

The billionaire also dug up old quotes from Trump about reining in federal spending and asked, “Where is this guy today?”

Musk had entered government with bold goals, including trimming $2 trillion from the federal budget. But he left with minimal results—cutting less than 1%—and leaving behind turmoil in several agencies.

His growing focus on politics has also sparked backlash, with protests at Tesla facilities and concerns from investors that he’s too distracted from running his businesses.

KanyiDaily recalls that Donald Trump and Elon Musk mocked pop star Taylor Swift after she was booed by the crowd at the 2025 Super Bowl.