ISLAMABAD (PEN) : Once close allies, the former U.S. president and billionaire entrepreneur now clash publicly over budget policy and political influence
U.S. President Donald Trump and tech billionaire Elon Musk have entered a heated public dispute, trading personal jabs and political threats as tensions over federal spending and government contracts erupt into open hostility.
The fallout marks a dramatic end to what was once a strategic alliance between Trump and Musk, who had served as head of the Department of Government Efficiency during Trump’s administration. Their increasingly personal feud is now spilling across political and financial landscapes, with implications for markets, federal policy, and upcoming elections.
Trump Threatens Musk’s Federal Contracts
Speaking from the Oval Office on Thursday, Trump sharply criticized Musk and suggested that the U.S. government should reconsider its contracts with the entrepreneur’s businesses, including SpaceX and Starlink.
“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.
The remarks triggered immediate market response. Tesla shares dropped by more than 14% by market close Thursday, wiping out approximately \$150 billion in market value — the steepest single-day loss in the company’s history.
Musk Calls for Trump’s Impeachment
In response, Musk reacted in real time on X (formerly Twitter), where he has a massive following. After a user posted that Trump should be impeached, Musk simply replied, “Yes.” The comment sparked controversy, especially given that Republicans currently control both chambers of Congress.
“Without me, Trump would have lost the election,” Musk added in a separate post, referencing his reported \$300 million in campaign support during the last cycle. Musk also attacked Trump’s recent economic legislation, saying it would worsen the nation’s fiscal outlook and drive the U.S. toward a recession.
Musk has openly criticized Trump’s latest tax-and-spending bill, calling it a “disgusting abomination” and warning it could increase the national debt — already at \$36.2 trillion — by as much as \$5 trillion.
SpaceX Caught in the Crossfire
Amid escalating tensions, Musk briefly threatened to decommission the Dragon spacecraft — the only U.S. vehicle capable of transporting astronauts to the International Space Station — in response to Trump’s statements. However, he later backed off the threat, suggesting some room for reconciliation.
Still, the feud has raised concerns in Washington about the future of critical government programs that rely on Musk’s aerospace ventures. SpaceX and Starlink are key federal contractors, especially for NASA and the Pentagon.
Political Fallout and Midterm Concerns
The clash is also reverberating across the Republican Party, where Musk’s financial backing and digital influence are seen as vital for electoral strategy.
“Elon really was a significant portion of the ground game this last cycle,” said a Republican strategist with links to both camps, speaking to Reuters anonymously. “If he sits out the midterms, that worries me.”
Musk has hinted at scaling back political donations, and recent protests at Tesla facilities have added to investor unease, with critics arguing his growing political involvement is distracting from core business operations.
On Tuesday, Musk posted, “In November next year, we fire all politicians who betrayed the American people.”
A Rift That Could Reshape 2025 Politics
While both Trump and Musk are known for their combative public personas and prolific use of social media, their current dispute signals deeper fractures within conservative political circles — particularly on fiscal policy, corporate influence, and the role of tech leaders in national politics.
Though a brief exchange between Musk and investor Bill Ackman — in which Musk responded “You’re not wrong” to a call for reconciliation — suggested a possible truce, the overall tone remains confrontational.
As political analysts watch closely, the Trump-Musk divide may emerge as a defining rift ahead of the 2026 midterm elections and a broader test of loyalty, power, and populism in American politics.
