President Donald Trump has reportedly threatened to sever Elon Musk’s federal contracts and subsidies, a move he claims could save the United States “billions and billions” of dollars. This marks the latest chapter in the escalating dispute between the former president and the entrepreneur, once his senior adviser.
Earlier this week, Musk publicly denounced Trump’s sweeping tax and policy bill, labeling it a “disgusting abomination”. This triggered a series of retaliatory remarks from Trump, culminating in his threat to cut Musk’s governmental subsidies and contracts. The president justified his decision by stating that Musk was “wearing thin” and that he had asked him to leave the administration.

Musk, the CEO of SpaceX and Tesla, responded promptly. He announced that in light of Trump’s threats, SpaceX would begin decommissioning its Dragon spacecraft immediately. This development follows earlier reports that Trump had also rescinded Musk’s Electric Vehicle Mandate, a move the former president claimed had caused Musk to react “CRAZY”.
Musk, however, rejected these claims. In a post on X, he branded Trump’s allegations as an “obvious lie”, and disputed that any frustration he may have shown was related to the Electric Vehicle Mandate. He also denied having any involvement in the crafting of the controversial GOP legislation, claiming it was “passed in the dead of night so fast that almost no one in Congress could even read it”.
The fallout between Trump and Musk has been startling. It began on Tuesday afternoon when Musk openly criticized Trump’s tax and policy bill, and it has since escalated into a public feud, characterized by an exchange of incendiary remarks on social media. The significance of this should not be overlooked. It raises important questions about the relationship between politics and business, and the role of government subsidies and contracts.
This raises important questions about the future of SpaceX and Tesla, and the potential financial implications of the withdrawal of federal contracts and subsidies. As of now, no action has been taken, but the situation remains fluid. The facts, as we now know them, suggest that this dispute could have far-reaching consequences for both parties involved.
As we await further developments, it’s important to remember that the public’s right to information remains paramount. We must continue to scrutinize the actions of our leaders, and hold them accountable for their decisions.