Trump-Musk Feud Boils Over as President Threatens to Cut Elon Musk’s Federal Contracts
WASHINGTON, D.C. – The once-powerful alliance between President Donald Trump and tech billionaire Elon Musk has erupted into a full-blown political feud, as Trump responded to Musk’s criticism of his domestic policy bill by threatening to end the entrepreneur’s federal contracts.
Speaking from the Oval Office on Thursday, Trump told reporters he was “very disappointed” in Musk, marking the sharpest public break between the two influential figures to date.
“Elon and I had a great relationship. I don’t know if we will anymore,” Trump said, less than a week after the two exchanged mutual praise during Musk’s final day as a special government employee in the Trump administration.
Shortly after Trump’s remarks, Musk fired back on X (formerly Twitter), claiming that Trump wouldn’t have won the 2024 election without his support:
“Without me, Trump would have lost the election, Dems would control the House, and the Republicans would be 51-49 in the Senate.”
Trump responded on Truth Social, threatening to cut ties with Musk’s companies financially:
“The easiest way to save money is to terminate Elon’s Governmental Subsidies and Contracts.”
Musk replied, “Go ahead, make my day.”
Musk Criticizes GOP’s Massive Domestic Policy Bill
The rift began earlier this week when Musk publicly condemned Trump’s sweeping GOP bill on taxes, energy, spending, and the border—calling it a “disgusting abomination” that would balloon the national deficit. The bill passed the House narrowly and is currently under Senate review.
Musk, a vocal opponent of government waste, took issue with the bill’s projected $2.4 trillion deficit increase, as estimated by the nonpartisan Congressional Budget Office. He also slammed the inclusion of what he labeled “disgusting pork” and suggested Republicans should rewrite the bill entirely.
Despite Musk’s previous role overseeing federal efficiency initiatives under Trump, the two haven’t spoken since Musk’s public attacks began, sources told CNN.
From Political Allies to Public Adversaries
The feud marks a dramatic fall from grace for Musk, who was one of Trump’s most visible supporters and biggest donors in the 2024 election cycle. Musk was empowered to reduce government waste during Trump’s second term through the “Department of Government Efficiency,” with mixed results.
As tensions escalated, Tesla’s stock dropped sharply, reflecting investor concern over the political clash and possible loss of lucrative federal contracts.
During Thursday’s Oval Office appearance with German Chancellor Friedrich Merz, Trump suggested that Musk’s outrage stemmed from the repeal of electric vehicle (EV) subsidies. He also claimed Musk was “wearing thin,” and that he had asked him to leave the administration—an assertion Musk dismissed as a “lie” on X.
Musk Denies EV Subsidies Are the Issue
Musk countered Trump’s remarks, denying any insider knowledge of the bill’s contents or special interest in EV subsidies. He reiterated that his opposition was centered on the bill’s size and spending:
“Keep the EV/solar incentive cuts in the bill… but ditch the MOUNTAIN of DISGUSTING PORK.”
A GOP strategist close to Musk echoed that view, telling CNN that Musk’s primary concern has consistently been the bill’s economic impact—not personal gain.
Personal Fallout and Political Ramifications
The feud quickly became personal. Conservative commentator Ashley St. Clair, who claims to share a child with Musk, even joked on X about offering Trump “breakup advice.”
Trump later seemed to soften his tone, reminiscing about Musk’s campaign support.
“Elon endorsed me very strongly… I think I would have won Pennsylvania easily anyway,” he said.
Still, insiders say Trump was visibly hurt by Musk’s recent attacks and has been monitoring media coverage closely. While some officials said Trump had avoided retaliating out of respect for their former friendship, that patience is now wearing thin.
Trump ended the press appearance by implying Musk may be suffering from “Trump Derangement Syndrome,” a term he uses for former allies who later criticize him:
“They leave, and they wake up in the morning, and the glamour is gone… and they become hostile.”
What’s Next for Trump, Musk, and the GOP?
With the future of Trump’s domestic policy bill in question and Musk threatening to use his wealth to influence future elections, the fallout could reshape Republican politics ahead of the 2026 midterms.
Musk, previously the largest disclosed donor in the last federal election cycle, had pledged millions more for 2026 GOP candidates—but now appears to be reconsidering.
As Trump weighs whether to sever Musk’s access to federal contracts, and Musk intensifies his campaign against the bill, the political and economic consequences of their fractured relationship are just beginning to unfold.
