President Donald Trump launched a personal attack on Tesla CEO Elon Musk on Thursday, labeling him “CRAZY” and threatening to revoke government contracts tied to Musk’s enterprises amid a dispute over a significant tax proposal.
In a message posted on Truth Social, Trump stated, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.” He added, “I was always surprised that Biden didn’t do it!”
Musk responded swiftly via X, saying, “Go ahead, make my day,” before intensifying his remarks with a declaration that SpaceX would begin to decommission its Dragon spacecraft in light of Trump’s comments about cancelling government contracts.
Musk, known for overseeing a range of companies including SpaceX, Tesla, the AI firm xAI, The Boring Company, and Neuralink, saw Tesla’s stock suffer a significant drop following Trump’s remarks.
This unexpected clash follows a recent cordial exchange between the two, which included praise for Musk during a White House event celebrating his tenure as a “special government employee.” However, by Thursday afternoon, Musk was expressing his disappointment with Trump’s “ingratitude” and asserting, “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.”
In additional posts, Musk seemed to advocate for Trump’s impeachment, suggesting a replacement by Vice President JD Vance. He also made unsubstantiated accusations that Trump’s administration had withheld records related to Jeffrey Epstein based on the notion that the president “is in the Epstein files,” a claim Trump has categorically denied.
When approached for comment, a White House spokesperson opted not to address Musk’s posts aimed at Trump directly.
In a later Truth Social post, Trump remarked that Musk was “wearing thin” towards the end of his term and claimed he had requested Musk to leave his position. Musk immediately dismissed this assertion as “an obvious lie.”
This feud has intensified against the backdrop of Musk’s vocal opposition to Trump’s expansive budget bill, which proposes to cut electric vehicle credits, a point Trump highlighted in the Oval Office during his comments about Musk’s dissatisfaction with the package.
Additionally, Musk has criticized the budget bill on the grounds that it could substantially raise the national deficit, actively urging Senate Republicans to “kill the bill.” His stance has garnered some backing from conservative fiscal advocates, although his aggressive attacks on Trump have led some of Trump’s supporters to defend him.
Steve Bannon, a former advisor to Trump, suggested in a statement that every contract with Musk should be rescinded and that thorough investigations should commence regarding various aspects of Musk’s dealings, including his ties to the Chinese Communist Party and his immigration status.
According to reports, SpaceX is one of the largest federal contractors, having secured approximately $3.8 billion in government contracts in fiscal year 2024. Overall, Musk’s businesses are estimated to have received around $38 billion from government contracts, loans, and subsidies over the past two decades, with expectations of continued federal funding in the future.
Among the projects SpaceX is involved with is a pivotal part of Trump’s proposed missile defense shield, also referred to as the “Golden Dome,” which could further entrench Musk’s ties with the government.
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— Finance Newso’s Lora Kolodny contributed to this report.
