The Trump Musk war has now escalated from tension to outright conflict. Within a single day of drama, Donald Trump threatened to terminate government contracts for Elon Musk’s businesses. In turn, Elon Musk supported calls to have the President impeached. The backlash did not end there.
Tesla shares fell by more than $150 billion in value, Musk spoke about withdrawing from important space missions, and Republican Party divisions grew. What started as a disagreement about budget policy has escalated into a public, personal, and highly charged fight.
Trump Fires Starting Gun on Federal Contracts
In an incendiary post on Truth Social, Trump opened fire. He demanded an end to all government subsidies and contracts with Musk’s companies. “The simplest thing to save money in our Budget, Billions and Billions of Dollars, is to end Elon’s Governmental Subsidies and Contracts,” Trump posted.
His statement struck markets instantly. Tesla’s stock fell more than 14%—the largest one-day market rout in its history, reducing its valuation by $150 billion.
Musk Responds with Impeachment Call
Within minutes of the closing of the markets, Musk responded with a “Yes” to a suggestion that Trump be impeached. The action stunned many in Washington, especially as Republicans, who dominate both houses of Congress, have demonstrated no desire to take such a move.
But Elon Musk’s message made it unmistakable—no longer a discussion of policy, but a power struggle.
Alliance Falls Apart Over ‘Disgusting Abomination’
This wasn’t a quick blowup. The trouble had been fermenting since Musk slammed Trump’s sweeping spending and tax-cut bill earlier this week. Musk declared it a “disgusting abomination” and would make the $36.2 trillion federal deficit even worse. At first, Trump remained mum. But on Thursday, he vented.
“I’m very disappointed in Musk. I don’t know if we will [have a relationship] anymore,” he said to reporters.
Musk responded quickly, tweeting, “Without me, Trump would have lost the election.” He reminded everyone that he spent nearly $300 million supporting Trump and other Republicans during the most recent election cycle.
SpaceX Threats and the Cost of Conflict
The controversy soon spilled over into political interests. Musk threatened to mothball SpaceX’s Dragon spacecraft—currently the sole US vehicle capable of transporting astronauts to the International Space Station. That threat shook the defense and space communities, although Musk subsequently walked back his statement.
Nonetheless, the message was heard loud and clear, his companies would not be immune to political payback.
Republican Fractures and Financial Fallout
This rivalry would also generate cracks in the Republican party base. Elon Musk’s endorsement has been critical to GOP campaign strategy, particularly with his enormous money support and social media presence. A senior Republican strategist cautioned:
“If he sits out the midterms, that worries me.”
He alluded to that potential. On Tuesday, he tweeted, “In November next year, we fire all politicians who betrayed the American people.” His political expenditures are set to decline, and increasing protests at Tesla facilities already are eroding sales.
A Possible Detente—Or Just a Pause?
Despite the verbal warfare, there may still be room for truce. Musk later responded “You’re not wrong” to investor Bill Ackman’s post urging peace between the two men. But reconciliation seems distant.
Elon Musk’s departure from Trump’s inner circle—as the former head of the Department of Government Efficiency—has left a void. His continued criticism now poses a growing threat to Trump’s legislative and electoral prospects.
Two Titans, One Broken Alliance
The Trump Musk feud has pitted two of the world’s most influential leaders against one another in a very public fashion. What began as a policy spat has devolved into an all-out war over contracts, credibility, and power.
As midterms near and the political stakes grow higher, this battle could redefine Republican politics—and Silicon Valley’s grip on Washington—for generations to come.
