On Thursday, President Donald Trump threatened to terminate government contracts with companies owned by billionaire Elon Musk, following Musk’s suggestion to impeach Trump. This led to a rapid deterioration of their previously amicable relationship, igniting a fierce exchange on social media platforms.
The conflict began when Trump criticized Musk, CEO of Tesla, during an Oval Office event. Within hours, their once-close rapport disintegrated as the world’s two wealthiest individuals engaged in a sharp verbal exchange on Trump’s Truth Social and Musk’s X platform.
Trump remarked on Truth Social that “the easiest way to save budget dollars, billions upon billions, is to cancel government contracts and funding to Elon.”
As a result, traders on Wall Street sold off shares of Tesla, causing the electric vehicle manufacturer’s stock to plummet by 14.3%, wiping nearly $150 billion from the company’s market value. This was Tesla’s largest single-day drop on record.
Shortly after the market’s close, Musk responded affirmatively on X to a post suggesting Trump should be impeached. However, the likelihood of Republicans pursuing impeachment is slim, with the party maintaining a majority in both the House and Senate.
The tensions escalated a few days prior when Musk criticized a tax and spending bill proposed by Trump. Initially, Trump remained silent, while Musk launched a campaign against the legislation, asserting it would increase the national debt.
Trump broke his silence on Thursday, expressing to reporters in the Oval Office his feelings of “disappointment.”
He added, “Elon and I have a great relationship. I’m not sure if it will remain the same after this.”
Musk announced that his company, SpaceX, would begin the process of shutting down the Dragon spacecraft, which is the only U.S. vehicle capable of transporting astronauts to the International Space Station, citing Trump’s threats as the reason. However, he soon retracted this statement, affirming that the spacecraft would continue to operate.
Musk’s ventures in space play a crucial role in the U.S. government’s space program.
In a possible sign of de-escalation, Musk replied to hedge fund manager Bill Ackman, who suggested Trump and Musk should reconcile, stating, “You’re not wrong.”