Washington D.C. – The relationship between US President Donald Trump and Elon Musk, the world’s richest man, has sharply deteriorated. On June 5, 2025, President Trump publicly threatened to cut Elon Musk’s billions in government contracts. This conflict arises amidst Elon Musk’s fierce criticism of a major domestic policy bill backed by Trump. Musk called the legislation “massive, outrageous,” and “pork-filled,” expressing his strong disapproval.
The feud has notable economic implications. Tesla stock plunged 10% following the escalation, signaling investor concern over Musk’s business prospects connected with government subsidies. The alliance between Trump and Musk, previously described by Trump as a “great relationship,” may now be over, as the President admitted uncertainty about their future partnership.
Trump’s threat targets Musk’s current and pending federal subsidies, which constitute a significant part of his business revenues. Musk has been outspoken against Trump’s policy agenda recently, igniting tensions that spilled into the public eye. Political observers suggest this dispute could lead to shifts in federal contract allocations and impact the broader tech and manufacturing sectors.
Key Points of the Feud
- Public criticism: Musk’s condemnation of Trump’s domestic policy bill.
- Economic fallout: Tesla stock fell 10% amid the escalating dispute.
- Government contracts at risk: Trump threatens to withdraw billions in subsidies from Musk’s companies.
- Uncertain future: The previously strong relationship between Trump and Musk is now in doubt.
This unfolding drama highlights the fragile ties between political power and influential business leaders in the United States.
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