What began as a high-powered alliance has now flared into a very public and costly feud. President Donald Trump and billionaire entrepreneur Elon Musk are embroiled in a bitter social media feud that could have serious repercussions for Musk’s sprawling business empire.
In a pointed post on Truth Social, Trump suggested the federal government should cut ties with Musk’s companies—SpaceX and Tesla among them—stating, “The easiest way to save money in our Budget… is to terminate Elon’s Governmental Subsidies and Contracts.” He even remarked that he was surprised President Biden hadn’t already done it.
While the exact financial ties remain partially classified, estimates suggest that the value of Musk’s government contracts and subsidies is approximately $38 billion. SpaceX alone benefits from an estimated $22 billion in federal spending, and Tesla has received over $11 billion in regulatory credits and subsidies to promote the adoption of electric vehicles.
The fallout from Trump’s remarks was immediate. Tesla shares, which had already taken a hit during the escalating spat, tumbled as much as 15% following the post. SpaceX, being a privately held company, doesn’t face public market pressures but still relies heavily on federal contracts.
The feud took off after Musk criticized a Republican-backed policy bill making its way through Congress, calling it a “disgusting abomination” due to its fiscal implications. Trump, who credited Musk with donating over $250 million to help his election efforts, told reporters he was disappointed by Musk’s public attacks.
Musk, who officially stepped down from his White House advisory role last week, spent much of Thursday lambasting Trump and GOP leaders on X, the social media platform he owns.
If Trump makes good on his threat, the repercussions could be massive. Tesla is already struggling with declining global sales, down 25% this year alone, partly due to backlash over Musk’s political entanglements. Meanwhile, Trump’s comment hints at reviving federal probes into Musk’s companies, which were reportedly facing $2.37 billion in liabilities before many investigations were shelved under Trump’s own administration.
Now, with egos clashing and billions on the line, the once-mutually beneficial relationship between Trump and Musk is unraveling—publicly, rapidly, and with high stakes.
