Trump Threatens Musk’s Contracts Amid Explosive Feud \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump publicly threatened to cancel Elon Musk’s government contracts amid a deepening political rift. Their once-close alliance imploded over Trump’s controversial spending bill and Musk’s vocal criticism. The dispute highlights the risks of billionaire-politician entanglements in U.S. governance.
Quick Looks
- Trump threatens to end Musk’s federal contracts and subsidies.
- Musk criticized Trump’s massive tax cut and spending bill.
- Their public breakup followed months of political closeness.
- Musk claimed Trump’s election win was partly thanks to him.
- Trump said Musk’s anger stemmed from slashed EV tax credits.
- Musk denied seeing the bill and called it a “disgusting abomination.”
- Trump withdrew Musk-backed Jared Isaacman’s NASA nomination.
- Musk spent over $250 million supporting Trump’s 2024 campaign.
- Their alliance crumbled less than a year after Musk joined the administration.
- Musk returned to social media attacks after leaving public office.
Deep Look
What began as a powerful political partnership between two of America’s most influential and controversial billionaires has disintegrated in spectacular fashion. President Donald Trump and Elon Musk, once close allies in policy and public image, are now entrenched in a public feud that erupted Thursday with Trump threatening to sever Musk’s federal contracts and subsidies — a move that could cost Musk’s companies billions.
The fallout comes just months after Musk had joined Trump’s inner political circle, serving as an unofficial adviser and high-profile backer of the president’s re-election campaign. Now, that alliance has imploded over Trump’s cornerstone fiscal legislation, which Musk lambasted as bloated, reckless, and opaque.
Trump’s Threat: Cut the Cash Flow
In a post on his social media platform, Trump wrote:
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”
This public declaration marks a sharp turn in Trump’s treatment of Musk, whom he once called a “genius of innovation” and invited into his Cabinet meetings and private inner circle. Musk, founder and CEO of Tesla, SpaceX, and several defense-related ventures, holds lucrative contracts with NASA, the Department of Defense, and other federal agencies. Threatening to cancel these deals isn’t just symbolic—it represents real, measurable financial loss.
The Breakup Begins
Just hours before the threat, Trump had expressed disappointment in Musk during an Oval Office meeting with Germany’s chancellor, referencing the tech mogul’s recent criticism of the administration’s budget. Musk had called the bill — known as the “Big Beautiful Bill” — a “disgusting abomination” that would balloon the federal deficit by $2.4 trillion and cut health insurance coverage for nearly 11 million people.
“Without me, Trump would have lost the election,” Musk posted on his social network. “Such ingratitude.”
Trump countered, saying Musk “only developed a problem” after the bill rolled back electric vehicle tax credits — a significant financial loss for Tesla.
Musk snapped back:
“False. This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!”
A Partnership Built on Influence and Power
Musk and Trump’s political relationship began with high visibility and even higher stakes. After Trump survived an assassination attempt in Pennsylvania in July 2024, Musk quickly endorsed him and launched a well-funded political action committee. The billionaire tech CEO appeared on stage at Trump rallies, joined him on Air Force One, and spent weekends at Mar-a-Lago.
Trump gave Musk unusual access: not only did Musk sit in on Cabinet meetings, he also temporarily led a new department—the Department of Government Efficiency. His influence reached into key policy areas including defense spending, space exploration, and transportation.
During his brief time in Washington, Musk became a symbol of Trump’s “outsider” governing style: brash, unconventional, and heavily reliant on personal loyalty.
The Rift Widens
Last week, Musk exited his government role quietly, appearing at a press conference in the Oval Office with a visible black eye — which he claimed came from playing with his toddler son. But many interpreted the injury as a metaphor for his time in politics.
Trump couldn’t help himself from mocking Musk’s appearance.
“I said, ‘Do you want a little makeup? We’ll get you a little makeup.’ Which is interesting,” Trump quipped.
Since then, Musk has used his platform to call out what he sees as hypocrisy and fiscal irresponsibility in Trump’s flagship spending bill. He also opposed the president’s decision to withdraw the nomination of Jared Isaacman — a Musk ally — for the top position at NASA, calling the move “petty.”
Trump defended the withdrawal, calling Isaacman “totally a Democrat” and hinting that the appointment was inappropriate given Musk’s departure.
$250 Million Loyalty Undone
Musk’s backing of Trump wasn’t just symbolic — it was financial. Musk’s PAC reportedly spent over $250 million in support of Trump’s re-election effort, including a controversial $1 million-a-day sweepstakes campaign in Pennsylvania designed to drive voter turnout.
But now, with Trump attacking Musk and threatening to cut off federal money, the future of any GOP-Musk alliance appears uncertain. While many Republicans admired Musk’s support and financial muscle, his falling out with Trump — the party’s de facto leader — may isolate him politically.
Musk, for his part, has returned to familiar territory: trolling politicians on social media. He reposted Trump’s old tweets from over a decade ago, criticizing Republican spending habits and questioning whether the president had been replaced by a “body double.”
Political and Business Implications
The public feud has broader implications. Trump’s warning about cutting off Musk’s government contracts could create ripple effects across SpaceX’s launches, Tesla’s EV initiatives, and Department of Defense partnerships.
Industry analysts warn that if Trump follows through, key government programs could face delays or disruptions. SpaceX currently provides critical infrastructure for NASA’s Artemis missions and U.S. satellite launches. Tesla also benefits from federal incentives that have fueled EV adoption.
While no formal executive action has been taken yet, the threat signals that Trump is willing to weaponize federal spending to punish political betrayal — a precedent that could influence future relationships between business leaders and the federal government.
A Cautionary Tale in Billionaire Politics
The Trump-Musk saga is a stark reminder of how volatile alliances can be when personal egos, national policy, and massive financial interests collide. In under a year, one of the most powerful business-political partnerships unraveled in full public view — offering both a political spectacle and a cautionary tale.
As Trump eyes additional spending cuts and Musk regroups as a private-sector antagonist, the clash between two of the most visible figures in American life promises more headlines — and potentially more consequences — in the weeks ahead.
