The political alliance between Donald Trump and Elon Musk has faced significant strain, following a fiery exchange in which the U.S. president hinted at stripping the billionaire of lucrative government contracts. During remarks broadcast from the Oval Office, Trump expressed his disappointment, stating, “I am very disappointed,” after Musk criticized a proposed spending bill backed by Trump’s former aide and major donors.
According to Politico, they reached out to Trump for comments on the dispute, and he downplayed its importance. Nevertheless, the two are expected to speak soon in an effort to ease tensions.
In a 10-minute address alongside German Chancellor Friedrich Merz, Trump stated, “I am very disappointed. I have helped Elon a lot… Elon and I had a great relationship. I don’t know if it will remain that way.” He lamented that just a week before, he had hosted a farewell party for Musk as he stepped down from his role on the government efficiency committee.
Later, Trump referred to Musk as “crazy” and indicated that he asked him to leave. Musk swiftly responded on X, asserting that Trump would not win the 2024 election without his support and labeled him ungrateful.
Musk reacted positively to the idea of impeaching Trump and harshly criticized the global tariffs implemented by Trump, claiming they could lead to an economic downturn. Trump hinted that he might deliver a significant blow to Musk by threatening to revoke the multi-billion dollar government contracts Musk holds, which involve launching rockets and utilizing the Starlink satellite network.
Trump wrote on Truth Social: “The easiest way to save money in our budget, billions of dollars, would be to terminate Elon’s government contracts and the support provided to him.” Musk promptly replied, indicating that he would begin to decommission the Dragon spacecraft, which is crucial for transporting NASA astronauts to the International Space Station.
In a message from Musk, he stated, “In light of the President’s statement about canceling my government contracts, SpaceX will immediately start the process of decommissioning the Dragon spacecraft.” However, he later appeared to backtrack on this comment in response to a user on X, saying, “Well, we won’t be decommissioning Dragon,” though his statement was somewhat unclear.
Tesla shares, which Musk owns, dropped over 14% during trading on Thursday, leading to a market value loss of approximately $150 billion—marking the largest single-day decline in the company’s history.
In pre-market trading in Europe on Friday, the stocks recovered some losses, rising by 5% after reports indicated that the two were set to talk. In the first international response to the verbal clash, the Kremlin stated it would not interfere in the Trump-Musk dispute, affirming confidence in Trump’s ability to manage the situation. Dmitry Peskov, a Kremlin spokesperson, indicated that the issue is an internal American matter.